单选题
Capital Controls and Monetary Policy in Developing Countries
This paper looks at both the theoretical and empirical literature on capital controls and finds that controls can play an important role in developing countries by helping to insulate them from some of the harmful
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of volatile and short-term capital flows.
The authors look at controls on capital inflows in Malaysia (1989-1995); Colombia (1993-1998); Chile (1989-1998); and Brazil (1992-1998), and also consider the
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of Malaysia"s controls on outflows in 1998-2001. They conclude that there is sufficient backing in both economic theory and empirical evidence to consider more widespread
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of capital controls in order to
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some of the macroeconomic problems
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with short-term capital flows, to enable certain development strategies, and to allow policymakers more flexibility with regard to crucial monetary and exchange rate policies.
The paper follows what appears to be a shift in the position of the International Monetary Fund (IMF) towards such controls. In a February paper, the IMF concluded that "there may be
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in which capital controls are a legitimate
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of the policy
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to surges in capital inflows. " The Fund"s Global Financial Stability Report
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in April 2010 was less sanguine about capital controls, but the net result is that the IMF appears more open to
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capital controls than in the past.