International Monetary Fund

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Window washer in China: IMF has clear, flexible, balanced view to help countries maximize benefits, address risks of capital flows (photo: Ryan Pyle/Corbis)

The IMF and Civil Society

IMF Adopts Institutional View on Capital Flows

December 6, 2012

The International Monetary Fund has developed a comprehensive, flexible, and balanced view on the management of global capital flows to help give countries clear and consistent policy advice.

Global capital flows have increased dramatically in the last decade, from an average of less than 5 percent of global GDP during 1980-1999 to a peak of about 20 percent by 2007. In the past, countries’ capital accounts have ranged from almost completely closed to completely open and, while most countries have moved in the direction of greater openness, wide differences remain. The issue of when, how, and how much to liberalize capital flows has been one of the most contentious in the global economic policy debate for decades.

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