Diplomacy & Politics Glossary
Every term you need — from Model UN procedure to international law, economics, and political theory. Clear definitions, real examples, and cross-linked concepts.
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6 termsCapital Account Liberalization
The process of removing restrictions on capital flows into and out of a country to encourage investment and financial integration.
Capital Controls
Government measures to regulate cross-border capital movements to stabilize the economy.
Capital Flight
Rapid movement of large sums of money out of a country due to economic or political instability, often harming the domestic economy.
Capital Flow Volatility
The degree of fluctuation in cross-border financial investments and loans over a short period, affecting economic stability.
Countercyclical Capital Buffer
Additional capital banks must hold during economic expansions to protect the financial system during downturns.
Currency Swap
An agreement between two parties to exchange principal and interest payments in different currencies over a set period.