Capital Controls and Capital Flows in Emerging EconomiesPolicies, Practices, and Consequences

Capital Controls and Capital Flows in Emerging EconomiesPolicies, Practices, and Consequences

Sebastian Edwards

Print publication date: 2013

ISBN: 9780226184975

Publisher: University of Chicago Press

Abstract

Some scholars argue that the free movement of capital across borders enhances welfare; others claim it represents a clear peril, especially for emerging nations. This book examines both the advantages and the pitfalls of restricting capital mobility in these emerging nations. In the aftermath of the East Asian currency crises of 1997, this book considers mechanisms that eight countries have used to control capital inflows and evaluate their effectiveness in altering the maturity of the resulting external debt and reducing macroeconomic vulnerability.

Table of Contents

Introduction

Sebastian Edwards

I Capital Controls in the Emerging Countries

1 Capital Flows in a Globalized World

Laura Alfaro, Sebnem Kalemli-Ozcan, and Vadym Volosovych

3 Currency Mismatches, Debt Intolerance, and Original Sin

Barry Eichengreen, Ricardo Hausmann, and Ugo Panizza

II Country Studies

8 Capital Flows and Controls in Brazil

Ilan Goldfajn and André Minella

9 The Chinese Approach to Capital Inflows

Eswar Prasad and Shang-Jin Wei

11 Malaysian Capital Controls: Macroeconomics and Institutions

Simon Johnson, Kalpana Kochhar, Todd Mitton, and Natalia Tamirisa

13 India's Experience with Capital Flows

Ajay Shah and Ila Patnaik

14 Capital Controls

Nicolas Magud and Carmen M. Reinhart