Advanced Country Experiences with Capital Account Liberalization

September 26, 2002

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Format: Chicago

Age Bakker, and Bryan Chapple. Advanced Country Experiences with Capital Account Liberalization, (USA: International Monetary Fund, 2002) accessed September 18, 2024

Summary

After the industrial countries established current account convertibility in the late1950s, they began to phase out their capital controls. Their efforts were slow and tentative at first, but built up considerable momentum by the 1980s as market-oriented economic policies gained popularity. This paper describes how national policymakers’ views of capital controls shifted over time, and how these controls have been closely related to regulation in other policy areas, such as banking and financial markets. As developing countries seek to liberalize their capital accounts to obtain the benefits of increased integration with the global economy, what lessons can be drawn from industrial countries’ diverse experiences with capital controls, and how can a country’s liberalization measures be sequenced to minimize disturbances to its exchange rate and monetary policies?

Subject: Balance of payments, Capital account liberalization, Capital controls, Capital flows, Capital inflows, Exchange rates, Foreign exchange

Keywords: Australia and New Zealand, Capital, Capital account liberalization, Capital account liberalization, Capital controls, Capital flows, Capital inflows, Capital liberalization, Capital restriction, Control, Europe, Exchange rates, Global, Liberalization, Liberalization measure, Liberalization process, Market, Monetary policy, OECD code, OP

Publication Details

Pages:

58
Volume:

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DOI:

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Issue:

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Series:

Occasional Paper No. 2002/009
Stock No:

S214EA0000000
ISBN:

9781589061170
ISSN:

0251-6365

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