Hot Money

Hot Money

Summary of Hot Money

Short-term capital movements animated by speculation (as in response to an expected significant change in exchange rates) or to take advantage of interest rate differentials. The term is particularly relevant to funds placed overseas in accounts that may be rapidly liquidated if exchange or interest rates are seen as taking a downward turn.

(Main Author: William J. Miller)


Posted

in

, ,

by

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *