Capital flight episode draws to a close

Overview

Net capital outflows from Russia in the year since mid-2010 have totalled around US$70 billion. Capital flight on this scale has previously occurred only during full-blown financial crises, whereas the past 12 months have seen economic recovery. The political and monetary factors at work here are well known. But since the pace of outflows began to slow in May, now is a good time to re-examine those drivers and assess the implications of this possible inflexion point in the trend of...