Liberalizing Capital Flows and Managing Outflows - Background Paper
Title | Liberalizing Capital Flows and Managing Outflows - Background Paper PDF eBook |
Author | International Monetary Fund. Monetary and Capital Markets Department |
Publisher | International Monetary Fund |
Pages | 60 |
Release | 2012-03-14 |
Genre | Business & Economics |
ISBN | 1498340849 |
Liberalization of capital flows can benefit both source and recipient countries by improving resource allocation, reducing financing costs, increasing competition and accelerating the development of domestic financial systems. The empirical evidence, however, is mixed on the benefits, and it suggests that countries benefit most when they meet certain thresholds related to institutional and financial development. The principal cost of capital flow liberalization stems from the economic instability brought on by volatile capital flows. In extreme cases, sudden stops or reversals in capital inflows can trigger financial crises followed by prolonged periods of weak growth.
Liberalizing Capital Flows and Managing Outflows
Title | Liberalizing Capital Flows and Managing Outflows PDF eBook |
Author | Internationaler Währungsfonds |
Publisher | |
Pages | 0 |
Release | 2012 |
Genre | |
ISBN |
Liberalization of capital flows can benefit both source and recipient countries by improving resource allocation, reducing financing costs, increasing competition and accelerating the development of domestic financial systems. The empirical evidence, however, is mixed on the benefits, and it suggests that countries benefit most when they meet certain thresholds related to institutional and financial development. The principal cost of capital flow liberalization stems from the economic instability brought on by volatile capital flows. In extreme cases, sudden stops or reversals in capital inflows can trigger financial crises followed by prolonged periods of weak growth.
Liberalizing Capital Flows and Managing Outflows
Title | Liberalizing Capital Flows and Managing Outflows PDF eBook |
Author | International Monetary Fund. Monetary and Capital Markets Department |
Publisher | INTERNATIONAL MONETARY FUND |
Pages | 48 |
Release | 2012-03-13 |
Genre | Business & Economics |
ISBN | 9781498340854 |
This is the fourth in a series of Board papers developing a comprehensive Fund view on capital flows and the policies that affect them. A first paper in December 2010 dealt with the Fund’s overall role in this area, both historically and prospectively. The second paper in March 2011 developed a framework for policy advice on managing capital inflows broadly endorsed by the Board, which constitutes a first round articulation of the Fund’s institutional views on managing capital inflows. The third paper in November 2011 examined the multilateral aspects of policies affecting capital flows, and focused mainly on source country policies. This paper covers liberalizing capital flows and the management of outflows.
Review of The Institutional View on The Liberalization and Management of Capital Flows — Background Note on Capital Flows and Capital Flow Management Measures — Benefits and Costs
Title | Review of The Institutional View on The Liberalization and Management of Capital Flows — Background Note on Capital Flows and Capital Flow Management Measures — Benefits and Costs PDF eBook |
Author | Gurnain Kaur Pasricha |
Publisher | International Monetary Fund |
Pages | 23 |
Release | 2022-03-30 |
Genre | Business & Economics |
ISBN |
The Fund’s Institutional View (IV) recognizes the benefits of and risks associated with capital flows. Since the IV was adopted, a growing literature has provided additional insights into the benefits and risks from capital flows. This note summarizes the insights from the recent literature and the experiences of staff since the adoption of the IV that have informed this review.
Do Inflows or Outflows Dominate? Global Implications of Capital Account Liberalization in China
Title | Do Inflows or Outflows Dominate? Global Implications of Capital Account Liberalization in China PDF eBook |
Author | Mr.Tamim Bayoumi |
Publisher | International Monetary Fund |
Pages | 32 |
Release | 2013-08-28 |
Genre | Business & Economics |
ISBN | 1475532156 |
This paper assesses the implications of Chinese capital account liberalization for capital flows. Stylized facts from capital account liberalization in advanced and large emerging market economies illustrate that capital account liberalization has historically generated large gross capital in- and outflows, but the direction of net flows has depended on many factors. An econometric portfolio allocation model finds that capital controls significantly dampen cross-border portfolio asset holdings. The model also suggests that capital account liberalization in China may trigger net portfolio outflows as large domestic savings seek to diversify abroad.
The Liberalization and Management of Capital Flows - An Institutional View
Title | The Liberalization and Management of Capital Flows - An Institutional View PDF eBook |
Author | International Monetary Fund. Strategy, Policy, & Review Department |
Publisher | International Monetary Fund |
Pages | 49 |
Release | 2012-04-11 |
Genre | Business & Economics |
ISBN | 1498339611 |
Capital flows have increased significantly in recent years and are a key aspect of the global monetary system. They offer potential benefits to countries, but their size and volatility can also pose policy challenges. The Fund needs to be in a position to provide clear and consistent advice with respect to capital flows and policies related to them. In 2011, the International Monetary and Financial Committee (IMFC) called for ?further work on a comprehensive, flexible, and balanced approach for the management of capital flows.? This paper proposes an institutional view to underpin this approach, drawing on earlier Fund policy papers, analytical work, and Board discussions on capital flows.
Capital Controls
Title | Capital Controls PDF eBook |
Author | Ms.Inci Ötker |
Publisher | International Monetary Fund |
Pages | 135 |
Release | 2000-05-17 |
Genre | Business & Economics |
ISBN | 1557758743 |
This paper examines country experiences with the use and liberalization of capital controls to develop a deeper understanding of the role of capital controls in coping with volatile capital flows, as well as the issues surrounding their liberalization. Detailed analyses of country cases aim to shed light on the motivations to limit capital flows; the role the controls may have played in coping with particular situations, including in financial crises and in limiting short-term inflows; the nature and design of the controls; and their effectivenes and potential costs. The paper also examines the link between prudential policies and capital controls and illstrates the ways in which better prudential practices and accelerated financial reforms could address the risks in cross-border capital transactions.