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Managing the Process of Removing Capital Controls: What Does the Literature Suggest?

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  • Moore, Winston

Abstract

Economic theory suggests that opening the capital account should allow a country to diversify away economic shocks, increase capital inflows, expand economic growth and efficiency and encourage governments to pursue good policies, the empirical evidence with regard to these theoretical predictions are in some instances debatable. Many studies, for example, have reported mixed results as it relates to the impact of capital account integration on growth, exchange rates, trade and policy discipline. This paper provides a review of this literature as well as some policy for policymakers in relation to managing the process of removing capital controls.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 21584.

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Date of creation: 12 Feb 2010
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Handle: RePEc:pra:mprapa:21584

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Keywords: Capital Controls; Liberalisation; Policy Options;

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