Liberalizing Capital Movements : Some Analytical Issues /

This paper addresses the potential gains and risks of open capital markets by first looking at what classical economic theory suggests aboutthe benefits of capital mobility and then examining the counterargumentsarising from problems of incomplete information and other distortions.It shows that the...

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Bibliographic Details
Main Author: Milesi-Ferretti, Gian
Other Authors: Detragiache, Enrica, Mussa, Michael, Tweedie, A.
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2005.
Series:Economic Issues; Economic Issues ; No. 2005/002
Online Access:Full text available on IMF
Description
Summary:This paper addresses the potential gains and risks of open capital markets by first looking at what classical economic theory suggests aboutthe benefits of capital mobility and then examining the counterargumentsarising from problems of incomplete information and other distortions.It shows that the risks of removing controls on flows of capital acrossnational borders are similar to those associated with removing controlson domestic financial institutions. The paper then explores how to manageliberalization to minimize the risks and maximize the benefits.
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Physical Description:1 online resource (19 pages)
Format:Mode of access: Internet
ISSN:1020-5098
Access:Electronic access restricted to authorized BRAC University faculty, staff and students