Spillover of Shocks in Money Flows Across Stock Markets: A Quantile‐Time Frequency Analysis of <scp>G7</scp> and <scp>BRICS</scp> Countries

In the context of an increasingly multipolar global financial system and heightened geopolitical risks, this paper investigates the dynamic spillovers of money flow shocks across global stock markets. Using the quantile‐time frequency connectedness approach, we find a moderate level of interconnectedness among money flow shocks within G7 countries, in contrast to the weaker interconnectedness observed in BRICS countries. Furthermore, short‐term spillovers tend to be more pronounced than long‐term ones in both regions. While France consistently serves as a long‐term transmitter of money flows within the G7 network, Russia plays a short‐term transmitter role within the BRICS group. The United States is a net receiver of shocks in the short run but a net transmitter in the long run. Notably, the degree of interconnectedness increases at the extreme quantiles of money flows, particularly within BRICS markets. By identifying key transmitter and receiver countries in these international networks, the study adds to the growing body of literature on capital‐flow dynamics in global equity markets. The findings also offer practical implications for policymakers, suggesting how they might better adjust macroeconomic and financial policies in response to cross‐border money‐flow shocks.