1 International capital flows ■Net capital outflows S-I net outflow(资本净流出)of"loanable funds'”(可贷资金) net purchases of foreign assets the country's purchases of foreign assets minus foreign purchases of domestic assets When S >I,country is a net lender When S <I,country is a net borrower CHAPTER8 The Open Economy slide 8 CHAPTER 8 The Open Economy slide 8 International capital flows ▪ Net capital outflows = S – I = net outflow(资本净流出)of “loanable funds”(可贷资金) = net purchases of foreign assets the country’s purchases of foreign assets minus foreign purchases of domestic assets ▪ When S > I, country is a net lender ▪ When S < I, country is a net borrower 1