As developing countries continue to expand their global economic weight and their currencies start being used intensively abroad, the issue of capital account liberalization will come to the fore.
Read Whole Story
Governments have five tools to adjust to capital flows: monetary policy, fiscal policy, foreign exchange intervention, prudential tools, and capital controls. The challenge is to find, for each case, the right combination.
Get top stories and blog posts emailed to me each day. Newsletters may offer personalized content or advertisements. Learn more.