Covid-19 and Capital Flows: The Responses of Investors to the Responses of Governments

Arbeitspapier

This paper examines the effect of national government response measures to Covid-19 on German international capital flows. Analyzing highly disaggregated monthly data from the German balance of payments statistics over the period from January 2019 through January 2021, we find that bilateral financial interactions are negatively affected by stricter containment and closure policies as well as health system policies of a partner country, while German capital flows benefit from a partner’s economic support policies. Moreover, to the extent that public interventions to fight the pandemic affect financial interactions, the adjustment mainly takes place along the intensive margin.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 9416

Classification and Topics

• Classification: Wirtschaft ; Financial Aspects of Economic Integration ; Economic Impacts of Globalization: General ; Health: Government Policy; Regulation; Public Health
• Subject: coronavirus ; pandemic

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Goldbach, Stefan ; Nitsch, Volker
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/248961
• Last update: 10.03.2025, 11:43 AM CET