Debate on International Capital Flows and Capital Controls
IntroductionNewsBasic & Policy Readings

(from Survey: Global Finance - Cruel sea of capital by Clive Crook Economist May 1, 2003)

THOSE who believe that globalisation throttles democracy, gouges the poor and fouls the environment are bound to regard today's mostly open markets for international capital as evil. However, this does not prove that unimpeded flows of capital are a good thing. The capital market has vindicated its critics and embarrassed its would-be defenders too often of late. It has been responsible for, or at least deeply implicated in, some very costly economic breakdowns. Perhaps the anti-globalists are on to something.

Rapid globalisation has done nothing to undermine the confidence liberals have always placed in trade. No serious economist questions the case for international integration through flows of goods and services, though there is a lively argument over how integration through trade can best be brought about. Trade is good. But even the most enthusiastic advocate of economic integration may be starting to wonder whether unimpeded flows of capital are quite such a blessing.

Economic principles suggest that they should be. Economics relies heavily on the idea that wider opportunities make people better off—or at least that they do not make them worse off. Whatever else trade does, it widens opportunities. When trade barriers come down, people on each side have an opportunity lacking in a closed economy. They can decide to consume goods that they have not produced, and pay for them by producing goods they do not wish to consume. If they believe they are better off as a result, that is what they will do. Otherwise, they will carry on as before.

Malaysia Ctrl Bk Eases Invest Abroad Rules For Residents Dow Jones March 23, 2005

China forex chief warns of 'excessive speculation' amid huge fund inflow AFP March 20, 2005

Malaysia's Bursa: Need To Contend With Cap Control Policy Dow Jones March 18, 2005

China warns on speculative capital FT March 11, 2005

Malaysian capital market expected to perform well Business Times March 11, 2005

India: More foreign fund inflows seen ahead Business Standard March 8, 2005

China central bank chief says 'hot money' not a major concern AFX March 7, 2005

Philippine Shares End 1.9% Higher;Foreign Funds Inflow Dow Jones March 7, 2005

Colombia to Abandon Investment Limits as Peso Gains Bloomberg March 2, 2005

Russian Economy Minister Speaks in Favor of Legal Capital Outflow MosNews Feb 28, 2005

Financial markets gather pace FT Feb 17, 2005

More money for Latin America IADB Feb 17, 2005

Heavy foreign funds inflow a threat to exchange rate, says Reddy Reuters Feb 15, 2005

Large capital inflows pose monetary policy challenges: RBI chief Hindu Business Times Feb 13, 2005

S&P: Latam, Caribbean countries to borrow big on capital markets Jamaica Observer Jan 13, 2005

Dec Foreign Flows Into Colombian Government Bonds Hit 6-Year High Dow Jones Jan 28, 2005

Schroder warns on plethora of aid plans FT Jan 28, 2005

Schroeder Backs Tax to Curb Finance Speculation, Tackle Poverty Bloomberg Jan 28, 2005

New SEC Boss to Deal With Rules' Violators Daily Champion Jan 26, 2005

Asia swirls in hot money Asia Times Jan 25, 2005

Direct investment in Turkey estimated at $3.8 billion this year Turkish Daily Jan 25, 2005

Capital flows to emerging markets up sharply, says IIF New Kerala Jan 20, 2005

Russia, China Attract Foreign Capital Flows Due to Dollar Weakness--IIF MosNews Jan 20, 2005

Global capital flow up 32% in '04 Observer Jan 20, 2005

Capital flows to emerging markets up sharply in 2004 AFP Jan 19, 2005

Hong Kong shares lower on concerns over fund outflows, interest rates AFX Jan 10, 2005

HK stocks fall 1.35 pct on worries hot money is leaving Reuters Jan 4, 2005

Citigroup move caps eventful year FT Dec 28, 2004

Asian capital flows reach post-crisis high UPI Dec 20, 2004

Canadian Stock Official Urges Capital Market Integration Dow Jones Nov 15, 2004

Brazil´s real opens weaker; mkt eyes capital flows Agencia Estado Nov 4, 2004

Peru's Ctrl Bk Raises Foreign Reserve Requirement To 30% Dow Jones Oct 30, 2004

Financial Stability Forum held its Twelfth Meeting BIS Sept 10, 2004

China Says Influx of Capital Hurts Efforts to Cool Economy NYT Sept 3, 2004

S Korea: Low Bond Yield Hastens Capital Outflow YonHap News Aug 17, 2004

Recent comments on BOJ monetary policy Reuters Aug 10, 2004

Liberalizing Capital IMF Aug 2004

Understanding Capital Flows to Emerging Markets Bank of England June 2004

IEO Report: The IMF's Approach to Capital Account Liberalization IMF Sept 2004

Bernanke: International Monetary Reform and Capital Freedom Fed Oct 14, 2004

Financial Globalization, Growth and Volatility in Developing Countries Eswar S. Prasad, Kenneth S. Rogoff, Shang-Jin Wei, M. Ayhan Kose NBER Dec 2004

Transcript of an Economic Forum Capital Flow Cycles: Old and New Challenges IMF Nov 7, 2004

Putting the Cart Before the Horse? Capital Account Liberalization and Exchange Rate Flexibility in China Eswar Prasad, Thomas Rumbaugh and Qing Wang IMF Jan 2005

Is Financial Globalization Harmful For Developing Countries? Transcript of an IMF Economic Forum IMF May 27, 2003

India Mustn't Treat Inflows as Bad Cholesterol: Andy Mukherjee Bloomberg Jan 18, 2005

Liberalizing Capital Movements: Some Analytical Issues by Barry Eichengreen, Michael Mussa, Giovanni Dell'Ariccia, Enrica Detragiache, Gian Maria Milesi-Ferretti, Andrew Tweedie (IMF 2/99)

Long Term Capital Movements by Lane and Milesi-Ferretti June 15, 2001

IMF: International Capital Markets Developments, Prospects, and Key Policy Issues by a staff team led by D. Mathieson and G. Schinasi, August 2001

Effects of Financial Globalization on Developing Countries: Some Empirical Evidence by Eswar Prasad, Kenneth Rogoff, Shang-Jin Wei and M. Ayhan Kose, IMF Mar 2003

Krueger: An Intolerable Surge? International Capital Flows and the Indian Policy Response IMF Jan 2004

Emerging Markets Watch: Finding the Middle Way Mohamed A. El-Erian PIMCO March 2005

Capital Account Liberalization and Economic Performance: Survey and Synthesis IMF Aug 2004

A New Set of Measures on Capital Account Restrictions IMF Aug 2004

Institutions and the External Capital Structure of Countries Andre Faria and Paolo Mauro IMF Dec 2004

Did the Malaysian Capital Controls Work? by E. Kaplan and D. Rodrik February 2001

Country Risk and Capital Flow Reversals by A. Razin and E. Sadka March 2001

IMF International Capital Markets Report. September 2000.

Sudden Stop, Financial Factors and Economic Collpase in Latin America: Learning from Argentina and Chile Guillermo A. Calvo, Ernesto Talvi NBER Feb 2005

Capital Controls, Sudden Stops and Current Account Reversals Sebastian Edwards NBER March 2005

The IMF in a World of Private Capital Markets Barry Eichengreen, Kenneth Kletzer, Ashoka Mody IMF March 2005

 

more... more news... more readings...
LinksOpinion & EditorialAcademic Research

Capital Flows and Macroeconomic Cycles Fourth Annual IMF Conference 2003

International Capital Mobility and Financial Fragility

International Capital Flows, Pre-conference NBER July 15, 2004

IMF: International Capital Markets Developments, Prospects, and Key Policy Issues by a staff team led by D. Mathieson and G. Schinasi, August 2001

Joint BIS-IMF-OECD-World Bank statistics on external debt

Mapping the global capital markets Mckinsey Quarterly Spring 2005

Taiwan: Capital Inflow Fighting Against Slowing Momentum Denise Yam MSDW Global Economic Forum March 8, 2005

Emerging Markets Watch: Finding the Middle Way Mohamed A. El-Erian PIMCO March 2005

Mapping the global capital markets McKinsey Quarterly Feb 2005

India Mustn't Treat Inflows as Bad Cholesterol: Andy Mukherjee Bloomberg Jan 18, 2005

SA attracting the wrong type of money iAfrica Jan 6, 2005

Ending Argentina's Addiction to Debt-Based Development CATO Aug 2, 2004

Two systems, one market? China Daily July 20, 2004

Takatoshi Kato: Financial Sector Reform and Capital Account Liberalization IMF May 19, 2004

Jack Boorman: IMF Explains Capital Flows Proposal IMF Mar 20, 2003

A ban on capital controls is a bad trade-off FT Mar 17, 2003

Global: US Capital Flows Update -- Near-Term Lull MSDW Global Economic Forum Jan 10, 2003

Global: US Capital Inflows -- Robust by Default MSDW Global Economic Forum Oct 4, 2002

Capital Control Freaks: How Malaysia got away with economic heresy Krugman Sept 9, 2004

Global: The Resiliency of US Portfolio Inflows MSDW Global Economic Forum Sep 6, 2002

Global: Capital Flows in a Dollar Crash Scenario MSDW Global Economic Forum Jun 3, 2002

Global: The State of Global Capital Flows MSDW Global Economic Forum Feb 5, 2002

Tom Vogel: Argentine Controls Destroy a Decade of Confidence Bloomberg December 7, 2001

Barry Eichengreen: An End to Argentina's Misery December 5, 2001

Ernst Welteke: Tobin's dangerous remedy World Bank Press Review September 27, 2001

The Irrationality of Capital Controls CATO Nov 3, 1998

Capital Controls: Capital Idea or Capital Folly? by Barry Eichengreen Nov 1998

Gobal Capitalism. Making it work by Jeffrey Sachs Economist Sept 1998

Curfews on capital: what are the options? by Paul Krugman Oct 1998

The Capital Truth by Shailendra IMF J. Anjaria Nov 1998

The Challenge of Managing Global Capital Flows by Manuel Guitián IMF June 1998

"Flows and Blows" by Martin Wolf FT March 2, 1998

Should We Restrict Short-Term Capital Flows? The Economist Jan 1998

Emerging Market Crises: An Asset Markets Perspective R Caballero Feb 2000

The Quality Effect: Does Financial Liberalization Improve the Allocation of Capital? IMF June 2004

Does Financial Globalization Induce Better Macroeconomic Policies? IMF May 2004

Do Macroeconomic Effects of Capital Controls Vary by Their Type? Evidence from Malaysia IMF Jan 2004

Keeping Capital Flowing: The Role of the IMF Michael D. Bordo, Ashoka Mody, Nienke Oomes NBER Nov 2004

Cross-Border Listings, Capital Controls, and U.S. Equity Flows to Emerging Markets IMF Dec 2003

Liberalizing Capital Movements: Some Analytical Issues by Barry Eichengreen, Michael Mussa, Giovanni Dell'Ariccia, Enrica Detragiache, Gian Maria Milesi-Ferretti, Andrew Tweedie (IMF 2/99)

Sequencing Capital Account Liberalizations and Financial Sector Reform by Barry Johnston (IMF 8/98)

When It Rains It Pours: Procyclical Capital Flows and Macroeconomic Policies G Kaminsky and C Reinhart and C Vegh June 2004

Working Group on Capital Flows Financial Stability Forum April 2000

Proposals Regarding Restrictions on Capital Flows by Jeffrey Frankel June 1998

A Review of Capital Account Restrictions in Chile in the 1990s  by Francisco Nadal-De Simone and Piritta Sorsa IMF April 1999

Capital Controls and Trade Liberalization in a Monetary Economy by Byung Jang IMF March 1999

Developing Countries and the Globalization of Financial Markets Malcolm Knight IMF Working Paper July 1998

The Benefits and Risks Associated with the Wider Integration of International Financial Markets Shigemitsu Sugisaki IMF Dec 5, 1998

Understanding Financial Crises: A Developing Country Perspective Frederic S. Mishkin; NBER Working Paper No. 5600 May 1996

The Global Capital Market: Benefactor or Menace? Maurice Obstfeld NBER Working Paper No. 6559, May, 1998

Temporary Capital Controls by Carmen Reinhart and Todd Smith Aug 1997

The Elusive Gains from International Financial Integration IMF May 2004

Catalyzing Capital Flows: Do IMF-Supported Programs Work as Commitment Devices? IMF May 2003

Capital Account Liberalization and Economic Performance: Survey and Synthesis IMF July 2002

IMF-Supported Programs in Capital Account Crises: Design and Experience IMF Feb 2002

Capital Flows to Transition Economies: Master or Servant IMF Jan 2002

Exchange Rates and Capital Flows IMF Dec 2001

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