Liberalizing Capital Flows and Managing Outflows : Background Paper.

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 suggest...

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Ente Autore: International Monetary Fund
Natura: Periodico
Lingua:English
Pubblicazione: Washington, D.C. : International Monetary Fund, 2012.
Serie:Policy Papers; Policy Paper ; No. 2012/014
Accesso online:Full text available on IMF
Descrizione
Riassunto: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.
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Descrizione fisica:1 online resource (59 pages)
Natura:Mode of access: Internet
ISSN:2663-3493
Accesso:Electronic access restricted to authorized BRAC University faculty, staff and students