Liberalization of the Capital Account: Experiences and Issues

Occasional Papers, March 15, 1993

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Liberalization of the Capital Account: Experiences and Issues

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Bibliographic details

• Authors: Liliana Rojas-Suárez, Donald J Mathieson
• Published: March 15, 1993
• Series: Occasional Papers
• DOI: https://doi.org/10.5089/9781557752802.084

Overview / Main themes

• Explores industrial and developing countries' use of capital controls since World War II, including the rationales for using them.
• Describes country experiences with relaxing controls as part of broader liberalization and structural reform efforts.
• Outlines the potential medium-term costs and benefits of an open capital account.
• Identifies policy measures that would help sustain capital account convertibility.

Key findings and analysis

• Historical coverage: Use of capital controls by industrial and developing countries since World War II.
• Motivations examined: Rationales for imposing capital controls.
• Liberalization experience: Practical descriptions of countries’ experiences when relaxing controls within broader reform agendas.
• Medium-term implications: Potential costs and benefits associated with an open capital account are outlined (described as medium-term).
• Policy emphasis: The study highlights policy measures needed to sustain capital account convertibility.

Subjects and keywords (as listed in the source)

• Subjects: Balance of payments, Capital account, Capital account convertibility, Capital controls, Capital flows, Foreign exchange, Real exchange rates
• Keywords: Africa, appendix capital flight, Asia and Pacific, capital, Capital account, Capital account convertibility, capital account transactions, Capital controls, Capital flows, capital transaction, Caribbean, control, deficit variable, domestic assets, Europe, exchange arrangement, exchange rate volatility, expropriation risk, financial market condition, Global, interest rate differential, OP, Real exchange rates, risk variable, Western Europe