Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Rebranding of Capital Controls in an Era of Productive Incoherence

Contents:

Author Info

  • Ilene Grabel
Registered author(s):

    Abstract

    The re-branding of capital controls has occurred against a broader backdrop of change and uncertainty. This state of affairs—which I have elsewhere termed “productive incoherence”--constitutes the broader environment in which thinking and practice on capital controls is now evolving. The present incoherence is, in my view, productive because it has widened the space around capital controls to a greater and more consistent degree than in the years that followed the East Asian crisis of 1997-98.� How are we to account for this extraordinary ideational and policy evolution on capital controls during the current crisis? I examine five factors that, in my view, must appear in any comprehensive account of the evolving re-branding of capital controls during the current crisis. These include: (1) the rise of increasingly autonomous developing states, largely as a consequence of their successful responses to the Asian financial crisis; (2) the increasing self confidence and assertiveness of their policymakers in part as a consequence of their relative success in responding to the current crisis at a time when many advanced economies faltered badly; (3) a pragmatic adjustment by the IMF to an altered global economy in which its influence has been severely restricted; (4) the intensification of the need for capital controls by countries at the extremes—i.e., not just those that faced implosion and thereby threatened cross-national contagion, but also and far more importantly by those that fared “too well” during the current crisis; and (5) changes in the ideas of academic economists and among IMF staff.� I conclude by exploring in passing important tensions that have emerged in conjunction with the re-branding of capital controls. Paramount in this regard are the efforts by IMF staff and some academic economists to “domesticate” the discussion and use of capital controls, in part by the implementation of (something akin to) a “code of conduct” to regulate and constrain capital account interventions.�

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.peri.umass.edu/fileadmin/pdf/working_papers/working_papers_301-350/WP318.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Political Economy Research Institute, University of Massachusetts at Amherst in its series Working Papers with number wp318.

    as in new window
    Length:
    Date of creation: 2013
    Date of revision:
    Handle: RePEc:uma:periwp:wp318

    Contact details of provider:
    Postal: 418 N Pleasant St, Amherst MA 01002
    Phone: (413) 545-6355
    Fax: (413) 545-2921
    Email:
    Web page: http://www.peri.umass.edu/
    More information through EDIRC

    Related research

    Keywords:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Nicolas E. Magud & Carmen M. Reinhart & Kenneth S. Rogoff, 2011. "Capital Controls: Myth and Reality - A Portfolio Balance Approach," NBER Working Papers 16805, National Bureau of Economic Research, Inc.
    2. Kose, M. Ayhan & Prasad, Eswar & Rogoff, Kenneth & Wei, Shang-Jin, 2009. "Financial Globalization and Economic Policies," IZA Discussion Papers 4037, Institute for the Study of Labor (IZA).
    3. M Ayhan Kose & Eswar Prasad & Kenneth Rogoff & Shang-Jin Wei, 2009. "Financial Globalization: A Reappraisal," IMF Staff Papers, Palgrave Macmillan, vol. 56(1), pages 8-62, April.
    4. Kasekende Louis & Brixova Zuzana & Ndikumana Leonce, 2010. "Africa: Africa's Counter-Cyclical Policy Responses to the Crisis," Journal of Globalization and Development, De Gruyter, vol. 1(1), pages 1-22, January.
    5. Daniela Gabor, 2012. "Managing Capital Accounts in Emerging Markets: Lessons from the Global Financial Crisis," Journal of Development Studies, Taylor & Francis Journals, vol. 48(6), pages 714-731, June.
    6. Joshua Aizenman, 2010. "Hoarding international reserves versus a Pigovian tax-cum-subsidy scheme: Reflections on the deleveraging crisis of 2008-9, and a cost benefit analysis," Proceedings, Federal Reserve Bank of San Francisco, issue Oct.
    7. Nicolas Magud & Carmen M. Reinhart, 2006. "Capital Controls: An Evaluation," NBER Working Papers 11973, National Bureau of Economic Research, Inc.
      • Nicolas Magud & Carmen M. Reinhart, 2007. "Capital Controls: An Evaluation," NBER Chapters, in: Capital Controls and Capital Flows in Emerging Economies: Policies, Practices and Consequences, pages 645-674 National Bureau of Economic Research, Inc.
    8. Anton Korinek, 2011. "The New Economics of Prudential Capital Controls: A Research Agenda," IMF Economic Review, Palgrave Macmillan, vol. 59(3), pages 523-561, August.
    9. Jonathan David Ostry & Atish R. Ghosh & Karl Friedrich Habermeier & Luc Laeven & Marcos Chamon & Mahvash Saeed Qureshi & Annamaria Kokenyne, 2011. "Managing Capital Inflows," IMF Staff Discussion Notes 11/06, International Monetary Fund.
    10. Jonathan David Ostry & Atish R. Ghosh & Anton Korinek, 2012. "Multilateral Aspects of Managing the Capital Account," IMF Staff Discussion Notes 12/10, International Monetary Fund.
    11. Kevin P. Gallagher, 2010. "Policy Space to Prevent and Mitigate Financial Crises in Trade and Investment Agreements," G-24 Discussion Papers 58, United Nations Conference on Trade and Development.
    12. Olivier Jeanne, 2012. "Capital Flow Management," American Economic Review, American Economic Association, vol. 102(3), pages 203-06, May.
    13. Barbosa Nelson, 2010. "Latin America: Counter-Cyclical Policy in Brazil: 2008-09," Journal of Globalization and Development, De Gruyter, vol. 1(1), pages 1-14, January.
    14. Ffrench-Davis Ricardo, 2010. "Latin America: The Structural Fiscal Balance Policy in Chile: A Move Toward Counter-Cyclical Macroeconomics," Journal of Globalization and Development, De Gruyter, vol. 1(1), pages 1-16, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:uma:periwp:wp318. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Judy Fogg).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.