Hot money

In economics, hot money is the flow of funds (or capital) from one country to another in order to earn a short-term profit on interest rate differences and/or anticipated exchange rate shifts. These speculative capital flows are called "hot money" because they can move very quickly in and out of markets, potentially leading to market instability.^[1]

^ Martin, Micheal F.; Morrison, Wayne M. (July 21, 2008). China's "Hot Money" Problems. Congressional Research Service (Report). RS22921.

[CRS-1] Martin, Micheal F.; Morrison, Wayne M. (July 21, 2008). China's "Hot Money" Problems. Congressional Research Service (Report). RS22921.

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