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Limited Participation, Income Distribution and Capital-Account Liberalization: Working Paper 2005-02

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  • Eva de Francisco

Abstract

In the late 1980s and the early 1990s, many nations began implementing a wave of economic reforms. Among those reforms was capital-account liberalization. As a result, international financial markets are substantially more active today than 20 years ago, although there are still many countries with various sorts of capital controls. Economic theory predicts that a complete opening of all financial markets should be welfare-improving; intertemporal consumption smoothing, consumption insurance, and better allocation of investment across countries would presumably all

Suggested Citation

  • Eva de Francisco, 2005. "Limited Participation, Income Distribution and Capital-Account Liberalization: Working Paper 2005-02," Working Papers 16302, Congressional Budget Office.
    • Handle: RePEc:cbo:wpaper:16302
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    File URL: https://www.cbo.gov/sites/default/files/109th-congress-2005-2006/workingpaper/2005-02_0.pdf
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