The Imf and the Liberalization of Capital Flows

Joyce, Joseph P.

doi:10.2139/ssrn.825652

“…As already underscored in Joyce and Noy (2008), IMF programs are not systematically associated with capital account liberalization. This is confirmed by analysis of specific IMF programs which shows that some types of programs (SBA and EFF) had a negative (and statistically significant) impact on capital account openness in Africa (Table 4).…”

Section: Imf Programsmentioning

confidence: 91%

Capital Account Policies, IMF Programs and Growth in Developing Regions

Bicaba

¹

,

Brixiová

²

,

Ncube

³

2014

SSRN Journal

0

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.

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“…Chwieroth states that "controls were said to harm economic performance, create severe distortions, and delay policy adjustments needed to eliminate balance of payments disequilibria" (2010a, 152). Joseph Joyce and Ilan Noy (2008) econometrically show that such advice was taken-between 1982 and 1998, capital account liberalization was significantly correlated with a nation having an IMF financial program.…”

Section: Rethinking Capital Controls At the International Monetary Fundmentioning

confidence: 99%

“…These factors are reinforced by the international financial institutions and by Western governments. Joyce and Noy (2008) find that the International Monetary Fund (IMF) implicitly linked capital account liberalization with its country programs. Abdelal (2007) shows that the Organisation for Economic Co-Operation and Development (OECD) Codes and credit-rating agencies also penalized nations for regulating capital.…”

Section: The Politics Of Regulating the Capital Accountmentioning

confidence: 99%

Ruling capital: emerging markets and the reregulation of cross-border finance

2015

Choice Reviews Online

1

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“…3 The IMF's campaign to liberalize capital flows culminated in an attempt to insert this aim into its charter. See Joyce and Noy (2008) for details and empirical evidence. 4 The most recent summary of this new IMF view is available in IMF (2012).…”

Section: Introductionmentioning

confidence: 99%

What Lessons Can Asia Draw from Capital Controls in Brazil During 2008-2012?

Jinjarak

¹

,

Zheng

²

2013

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. AbstractDriven by waves of foreign capital inflows and outflows, Indonesia, the Republic of Korea, and Thailand-among several other emerging markets-have resorted to capital control policy since 2006. Are capital controls effective? Controls on capital inflows have been experiencing a renaissance since 2008, with several prominent Asian and Latin American countries implementing them. We focus on Brazil, which instituted five changes in its capital account regime over 2008-2011. Using the synthetic control method, we construct counterfactuals (i.e., Brazil with no policy change) for each of these changes. We find no evidence that any tightening of controls was effective in reducing the magnitudes of capital inflows, but we observe some modest and short-lived success in preventing further declines in inflows when the capital controls were relaxed. We hypothesize that price-based capital controls' only perceptible effect is to be found in the content of the signal they broadcast regarding the government's larger intentions and sensibilities. In the case of Brazil, its left-of-center government's willingness to remove controls was perceived as a noteworthy indication that the government was not as hostile to the international financial markets as many expected it to be. Based on these findings, the effectiveness of capital controls should be viewed on a case-by-case basis, together with the political economy considerations, and other policy tools, i.e., foreign exchange intervention.

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The Imf and the Liberalization of Capital Flows

Cited by 19 publications

References 51 publications

Capital Account Policies, IMF Programs and Growth in Developing Regions

Capital Account Policies, IMF Programs and Growth in Developing Regions

Ruling capital: emerging markets and the reregulation of cross-border finance

What Lessons Can Asia Draw from Capital Controls in Brazil During 2008-2012?

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