Capital controls in an integrated world : A review of recent developments, policies and the academic debate
Herrala, Risto (25.08.2020)
Numero
9/2020Julkaisija
Bank of Finland
2020
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-202008252281Tiivistelmä
With the exception of financial crisis episodes, financial openness has increased across countries in recent decades. With international agreements now cementing the relatively open capital accounts of developed economies, the focus of the debate on capital account liberalization has moved on to emerging market economies (EMEs). While capital account liberalization can be desirable in improving access to finance, recent findings indicate that capital controls may be useful in strengthening financial stability in EMEs and in securing monetary policy autonomy against volatility of international capital flows. Recent developments, policies, and the academic debate are considered
in light of the gaps in our understanding of how to apply capital controls in combination with other policy instruments, as well as the uncertainty over how to liberalize the capital account while maintaining financial stability.
in light of the gaps in our understanding of how to apply capital controls in combination with other policy instruments, as well as the uncertainty over how to liberalize the capital account while maintaining financial stability.