IMF Reconsiders Capital Controls Opposition |
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February 22, 2010
The International Monetary Fund has shifted its long-held stance against capital controls as it seeks to help emerging economies protect themselves from future economic crises.
The International Monetary Fund has shifted its long-held stance against capital controls as it seeks to help emerging economies protect themselves from future economic crises.
In a new staff position note, IMF economists wrote that capital controls could be used in some cases by emerging market governments as a shield from unwanted capital flows.
For years, the fund has encouraged economic liberalisation and open capital accounts but now says that controls can be useful for providing stability to fragile economies.
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