This thesis analyzes focuses on cross-border capital flows and analyzes their determinants, macroeconomic impacts, and the effect of related policies using both episode-based and volume-based analyses. The first chapter introduces the overall research. In the second chapter, we classify extreme net capital flow movements into four types and investigate the macroeconomic consequences of each type. In the third chapter, we examine the effect of global investor sentiment on determining foreign capital inflows in the Korean stock and bond markets. In the fourth chapter, we analyze the effect of capital flow management policies on reducing extreme capital flow movements in emerging market economies. The main objective of this research is to shed light on the importance of large capital flows and extend research of cross-border capital flows using episode-based analysis. In addition, this research compares the results using episode-based analysis with those using volume-based analysis.