If large-scale investors withdraw their funds from a country, many other investors follow almost without any examination. Incidentally, that does not mean that the large-scale investors have adequately identified the risks in the past. As a result, however, the fundamental differences between individual investments or the countries concerned are obscured.
[11] See Pastoris, F. and Schmitz, M. (2020), “Euro area-US current account asymmetries: the role of foreign direct investment income in the presence of multinational enterprises”, forthcoming in Economic Bulletin, Issue 2, ECB. [12] See Lane, P. R. (2015), “Risk Exposures in International and Sectoral Balance Sheet Data", World Economics, Vol. 16, No 4, pp. 55-76.