In 1997, the IMF proposed chan

In 1997, the IMF proposed changing its charter to promotecapital account liberalization. By 2012, it had changed itsposition and accepted the use of capital controls. Why did the IMFreverse its position on capital controls?

Answer:

The IMF has come a long way since 2005 in clarifying, enhancing,and communicating its approach to capital account liberalization.Within the last five years, it issued the 2012 IntegratedSurveillance Decision that elucidated the place of capital accountissues in bilateral and multilateral surveillance, and developed aninstitutional view on the liberalization and management of capitalflows. IMF staff produced and synthesized a substantial amount ofacademic and operational research on capital account liberalizationand capital controls, and developed new multilateral surveillanceproducts (e.g., spillover reports) that allow for greater attentionto push factors affecting international capital flows. In theprocess, the Fund has also internalized many of the substantivelessons from past IEO evaluations (highlighted in IEO, 2014a) onthe importance of providing clear Board guidance; explicitly takinginto account, in policy and practice, different countrycircumstances and the need for evenhandedness; and breaking downinternal silos.

In the wake of the crisis the IMF surprised many observers byopenly embracing capital controls to both prevent and mitigatefinancial crises. The IMF supported the use of capital controls oninflows in a number of countries such as Brazil and South Korea(Gallagher, 2015). Most surprising to many was the IMF’s outrightadvocacy for the use of capital controls on outflows in Iceland aspart of that country’s post crisis stand-by-agreement.

In some ways, advocating for the appropriate use of capitalcontrols is new policy at the IMF. In 2012, the IMF adopted a ‘newinstitutional view’ on capital account liberalization and controlsthat states that capital account liberalization is not alwaysoptimal and that under certain conditions capital controls oninflows and outflows can be appropriate to prevent and mitigatefinancial instability (IMF, 2012). This shift has received asignificant amount of attention, however there is yet to be arigorous account of whether the IMF has put its new words intoaction.


 
"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"
Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with brilliantassignmenthelp.com
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Close

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes