MANAGEMENT OF CAPITAL FLOWS

Abstract

The purpose of the research is to study the factors influencing this system, to analyze the theory and actual data related to the application of control measures on cross-border capital flows, to systematize the possible results of this tool, to create a balance and to properly manage capital flows, along with the balance of payments, which is a statistical system reflecting economic transactions, as well as determining its positive and negative consequences. The methodology of the research – in order to investigate the multi-directional effects of capital flows in the research, the methods of analysis, analysis, synthesis and secondary data analysis were used. The practical importance of the research - the results of this research can be used for scientists, politicians, analysts, financial institutions, interested parties in the economy sector to conduct macroeconomic analysis, formulate related policies and create a model related to capital flow management. The results of the research – this research significantly emphasizes the importance of macroeconomic analysis to monitor the economic health of a country, develop sound policies and practices and sustain appropriate growth, strategies to mitigate the potential downsides of capital flow volatility. The originality and scientific novelty of the research – the research highlights the importance of cross-border capital movement in enhancing access to finance, promoting innovation, the benefits of capital flows to the country, and the challenges it can create, contributing to the overall well-being of the economy.