Description
Capital controls are measures taken by a government to restrict the flow of capital into or out of a country. Capital controls can be used to protect a country's economy from sudden fluctuations in the value of its currency, or to prevent a country from becoming too dependent on foreign investment. Capital controls can also be used to promote economic stability.
Capital account liberalization is the process of loosening or removing capital controls. Capital account liberalization can help to increase the flow of capital into a country, and can help to increase the country's economic efficiency.
The contributors to this volume evaluate the pros and cons of capital controls and capital account liberalization in the context of economic efficiency, economic structure, and political consequences. They also consider newer arguments from the fields of public choice, financial economics, and industrial organizations.
In addition, the contributors examine some of the specific approaches undertaken in various emerging market economies, including in east-central Europe and the former Soviet Union.
As a growing number of nations usher in market economies, policymakers must grapple with key decisions regarding capital controls and capital account liberalization. In this ambitious volume, distinguished economists evaluate these choices within the context of economic efficiency, economic structure, and political consequences in an increasingly global and competitive market environment. Critically assessing traditional positions on the timing and degree of liberalization of trade and capital flows, they also consider newer arguments from the fields of public choice, financial economics, and industrial organizations. In addition, the contributors examine some of the specific approaches undertaken in various emerging market economies, including in east-central Europe and the former Soviet Union.
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