01708cas a2200241 a 4500 AALejournalIMF020364 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498340847 2663-3493 BD-DhAAL BD-DhAAL International Monetary Fund. Liberalizing Capital Flows and Managing Outflows : Background Paper. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (59 pages) Policy Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Liberalization of capital flows can benefit both source and recipient countries by improving resource allocation, reducing financing costs, increasing competition and accelerating the development of domestic financial systems. The empirical evidence, however, is mixed on the benefits, and it suggests that countries benefit most when they meet certain thresholds related to institutional and financial development. The principal cost of capital flow liberalization stems from the economic instability brought on by volatile capital flows. In extreme cases, sudden stops or reversals in capital inflows can trigger financial crises followed by prolonged periods of weak growth. Mode of access: Internet Policy Papers; Policy Paper ; No. 2012/014 Full text available on IMF http://elibrary.imf.org/view/journals/007/2012/014/007.2012.issue-014-en.xml IMF e-Library