{
  "title": "A Modernized Approach to Managing the Risks in Cross-Border Capital Movements",
  "publication": "IMF Policy Discussion Papers, July 1, 1999",
  "sourceUrl": "https://www.imf.org/en/publications/imf-policy-discussion-papers/issues/2016/12/30/a-modernized-approach-to-managing-the-risks-in-cross-border-capital-movements-3188",
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  "summary": "This paper outlines a “modern” approach to managing risks in cross-border capital movements that is consistent with an environment of increased and liberalized capital flows.",
  "sections": [
    {
      "heading": "Summary and purpose",
      "content": "- Outlines a “modern” approach to managing risks in cross-border capital movements that is consistent with an environment of increased and liberalized capital flows.\n- Emphasizes reducing the potential size of shocks associated with capital movements and increasing the resilience of the financial system to such shocks.\n- States the approach is expected, over time, to reduce the need for recourse to capital controls."
    },
    {
      "heading": "Key elements of the modern approach",
      "content": "- A consistent monetary and exchange rate policy mix to avoid incentives for volatile capital flows.\n- Prudential management of the specific risks in capital flows.\n- Supporting financial sector reforms.\n- Appropriate sequencing of liberalization."
    },
    {
      "heading": "Expected outcomes",
      "content": "- Reduction in the potential size of shocks associated with capital movements.\n- Increased resilience of the financial system when shocks occur.\n- Gradual reduction in the need to use capital controls."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Balance of payments; Capital controls; Capital flows; Exchange rate flexibility; Exchange rate policy; Exchange rates; Foreign exchange\n- Keywords: capital; Capital controls; Capital flows; capital mobility; consistency of policy mix; control; Cross-border capital movements; exchange rate; Exchange rate flexibility; Exchange rate policy; Exchange rates; Global; interest rate; managed exchange rate arrangement; PDP; policy consistency; policy mix; prudential risk management; rates of return on asset; risk; risk exposure; risk weight; time consistency of exchange rate policy\n\n---\n\n Content in this bundle\n\n- A Modernized Appoach to Managing the Risks in Cross-Border Capital Movements - PDP/99/6\n  - A Modernized Appoach to Managing the Risks in Cross-Border Capital Movements - PDP/99/6 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - A Modernized Appoach to Managing the Risks in Cross-Border Capital Movements - PDP/99/6 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/imf-policy-discussion-papers/issues/2016/12/30/a-modernized-approach-to-managing-the-risks-in-cross-border-capital-movements-3188"
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    "Authors: Inci Ötker, R. B. Johnston",
    "Published: July 1, 1999",
    "Series: IMF Policy Discussion Papers",
    "DOI: https://doi.org/10.5089/9781451972092.003",
    "Outlines a “modern” approach to managing risks in cross-border capital movements that is consistent with an environment of increased and liberalized capital flows.",
    "Emphasizes reducing the potential size of shocks associated with capital movements and increasing the resilience of the financial system to such shocks.",
    "States the approach is expected, over time, to reduce the need for recourse to capital controls.",
    "A consistent monetary and exchange rate policy mix to avoid incentives for volatile capital flows.",
    "Prudential management of the specific risks in capital flows.",
    "Supporting financial sector reforms.",
    "Appropriate sequencing of liberalization.",
    "Reduction in the potential size of shocks associated with capital movements.",
    "Increased resilience of the financial system when shocks occur.",
    "Gradual reduction in the need to use capital controls.",
    "Subject: Balance of payments; Capital controls; Capital flows; Exchange rate flexibility; Exchange rate policy; Exchange rates; Foreign exchange",
    "Keywords: capital; Capital controls; Capital flows; capital mobility; consistency of policy mix; control; Cross-border capital movements; exchange rate; Exchange rate flexibility; Exchange rate policy; Exchange rates; Global; interest rate; managed exchange rate arrangement; PDP; policy consistency; policy mix; prudential risk management; rates of return on asset; risk; risk exposure; risk weight; time consistency of exchange rate policy",
    "**A Modernized Appoach to Managing the Risks in Cross-Border Capital Movements - PDP/99/6**"
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