This paper develops a model of international capital flows from a general equilibrium model of the financial markets of an open economy. Capital flows are viewed as the mechanism by which a domestic excess demand for money is removed and consequently the key explanatory variables in the model are changes in domestic income, the currentaccount balance, changes in domestic monetary instruments, and changes in foreign interest rates since these will all affect either the demand for or supply of money. The quarterly estimates of the capital flow equation for Australia, Italy, Germany, and the Netherlands appear to be consistent with the hypotheses derived from the model.