Capital Account Regulations for Stability and Development: A New Approach

New Rules Spotlight on a New Report

Capital Account Regulations for Stability and Development:

A New Approach

By Kevin P. Gallagher, Stephany Griffith-Jones and José Antonio Ocampo

November 2011

In the wake of the financial crisis numerous emerging market and developing countries have been deploying what have traditionally been referred to as ‘capital controls’ to curb excessive speculation on their currencies and domestic assets. In response to those efforts, French President Nicolas Sarkozy called on the International Monetary Fund to develop a set of guidelines for the use of capital controls. The goal is for the President to present such guidelines at the G-20 Summit in Cannes this year. The IMF has published a preliminary set of guidelines to that end. This policy brief provides a critical review of those guidelines and offers an alternative protocol for a development friendly-approach to capital account regulation.

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