The paper "Capital Flows, Push versus Pull Factors and the Global Financial Crisis" by Marcel Fratzscher examines the dynamics of global capital flows during and after the 2007-2008 financial crisis. Using a factor model and high-frequency portfolio capital flow data for 50 economies, the study finds that common shocks, such as key crisis events and changes in global liquidity and risk, significantly influenced capital flows. However, these effects varied significantly across countries, with differences in institutional quality, country risk, and macroeconomic fundamentals playing a crucial role. The analysis reveals that common factors were the primary drivers of capital flows during the crisis, while country-specific factors became more dominant in the recovery period, particularly for emerging markets. The paper highlights the importance of understanding both global and domestic factors in shaping capital flow dynamics and suggests that countries can mitigate adverse effects by improving their institutions, deepening financial markets, and enhancing macroeconomic policies.The paper "Capital Flows, Push versus Pull Factors and the Global Financial Crisis" by Marcel Fratzscher examines the dynamics of global capital flows during and after the 2007-2008 financial crisis. Using a factor model and high-frequency portfolio capital flow data for 50 economies, the study finds that common shocks, such as key crisis events and changes in global liquidity and risk, significantly influenced capital flows. However, these effects varied significantly across countries, with differences in institutional quality, country risk, and macroeconomic fundamentals playing a crucial role. The analysis reveals that common factors were the primary drivers of capital flows during the crisis, while country-specific factors became more dominant in the recovery period, particularly for emerging markets. The paper highlights the importance of understanding both global and domestic factors in shaping capital flow dynamics and suggests that countries can mitigate adverse effects by improving their institutions, deepening financial markets, and enhancing macroeconomic policies.