capital flight

Definition

The movement of money from one investment to another in search of greater stability or increased returns. Sometimes specifically refers to the movement of money from investments in one country to another in order to avoid country-specific risk (such as high inflation or political turmoil) or in search of higher returns. Capital flight is seen most commonly in massive foreign capital outflows from a specific country, often at times of currency instability. Often, the outflows are large enough to affect a country's entire financial system.

Use capital flight in a sentence

The capital flight was an expected event as each investor was risk averse so it was natural to seek less risk.

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The capital flight was really just a search for greater stability and I was glad to have it implemented in our system.

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One of the many problems facing Ukraine is the sudden capital flight from the country following the Crimea invasion, despite controlling key oil pipelines to Europe.

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