Written by the Fiveable Content Team • Last updated September 2025
Written by the Fiveable Content Team • Last updated September 2025
Definition
Capital flight is the rapid movement of large sums of money or assets out of a country due to economic or political instability. This phenomenon often leads to a decrease in investment and exacerbates issues of global inequality.
Related terms
Economic Stability: The condition in which an economy operates without excessive fluctuations in key indicators such as growth rates, inflation, and unemployment.
Political Instability: A situation where there is uncertainty or unpredictability concerning governance, often leading to abrupt changes in government policies or leadership.
The unequal distribution of resources and opportunities among different countries across the world, contributing to varying levels of prosperity and standards of living