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Liberalizing Capital Flows and Managing Outflows : Background Paper.

Author/Creator:
International Monetary Fund.
Publication:
Washington, D.C. : International Monetary Fund, 2012.
Format/Description:
Government document
Book
1 online resource (59 pages)
Series:
IMF eLibrary
Policy Papers; Policy Paper ; No. 2012/014
Policy Papers
Status/Location:
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Summary:
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.
Notes:
Part of the IMF eLibrary collection.
Description based on print version record.
Other format:
Print Version: Liberalizing Capital Flows and Managing Outflows: Background Paper
ISBN:
1498340849
9781498340847
ISSN:
2663-3493
Publisher Number:
10.5089/9781498340847.007 doi
Access Restriction:
Restricted for use by site license.