Capital Account Convertibility: A New Model for Developing Countries

Author/Editor:

Peter J. Quirk

Publication Date:

July 1, 1994

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper analyzes issues for developing countries considering a move to capital account convertibility. It reviews the relevant literature, including arguments for sequencing, and analyses in a series of charts various features of the foreign exchange market impact of removing controls, as against the alternative of foreign exchange intervention. Finally, it examines recent experiences of capital account liberalization by developing countries in the context of multi-pronged stabilization programs.

Series:

Working Paper No. 1994/081

Subject:

Balance of payments Capital controls Capital inflows Exchange rate arrangements Exchange rates Exchange restrictions Foreign exchange

Notes:

Developing countries comprise Costa Rica, El Salvador, Guyana, Indonesia, Jamaica, Trinidad and Tobago, and Venezuela.

English

Publication Date:

July 1, 1994

ISBN/ISSN:

9781451955118/1018-5941

Stock No:

WPIEA0811994

Pages:

26

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