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International capital mobility refers to the ease with which financial assets, such as money, stocks, bonds, and other securities, can flow across international borders. This phenomenon has become increasingly significant in an interconnected world where economic decisions made in one country can have profound effects on economies across the globe.

The Federal Reserve, as the central bank, plays a crucial role in regulating financial markets and ensuring stability in international trade. The study of international capital mobility encompasses various theories, models, and empirical analyses aimed at understanding the drivers and implications of capital movements.

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