IMF: The Liberalization and Management of Capital Flows - An Institutional View

This post was written by Philip Lane

The IMF has released a major new position paper on capital flows - it is here.

7 Responses to “IMF: The Liberalization and Management of Capital Flows - An Institutional View”

  1. David O'Donnell Says:

    This is where it is at.

  2. David O'Donnell Says:

    Fig 2 (p.9) & Fig 4 (p.23) on a financial system out of control - yet Weidman, Sinn, Merkelism et al note only responsibility in the destination of the capital flow and naught for the origin … and in the EZ the ‘origins’ are calling the shots as in Schaueble and Moscovici today and the Dutch PM last week.

    Some child needs to stand up and call a halt to this nonsense ….

  3. The Dork of Cork. Says:

    Benefits ?

    1. efficiency = leverage = lack of redundancy

    2 .competitiveness in the financial sector ?
    How can Free banks given the right to produce credit in the governments unit of account be dynamic in that 80s myth making sort of way ?
    They can only be dynamic in that catastrophic type of way.
    (Our Gov is on record by the way of just loving free banking to bits.)
    We need more RBSs……………

    3. what the hell are these “Thresholds” ? thingies - how can they be measured ?

    4. what is the goal of liberalization ?
    Is the goal liberalization itself , if so - it this logical captain ?

    5 . Does anybody in his right mind trust the fund to give advice ?

    The fund is essentially countries treasuries taken over by bankers is it not ?

    Like the ESM
    It is bankers gaining direct control of government fiat to bail out their banking credit malinvestments.
    Essentially bankers gaining political power without using messy political institutions.

    The political elites political institutions are by default non political………giving “impartial” advice.

  4. The Dork of Cork. Says:

    “Fair minded experts”…………

    The political organisations of the ruling class are not called political……….

    If something or someone decides who will take the losses…………well that is a political decision……..
    Its not the market.
    Rabbit said we live in a market
    We do not - we live in a market state
    A very very different beast.

    Go to 39 minutes - this is how it works.

    http://archive.org/details/AV_516-AMERICAN_POWER_STRUCTURE_UPDATE-PART_I

    I want to have some element of power in my ballot .
    I want my vote to decide POLICEY on some level.
    I don’t care if Bosco himself is in power once he says the hand up his arse days are behind him.

    Latter in the clip Chomsky cuts to the quick.
    Whats happening now is very much like 17 th century England.

  5. seafóid Says:

    Levine, 2005 presents empirical evidence of the relationship between financial development and growth. Obstfeld, 2009 argues that a plausible explanation for the general trend toward capital flow liberalization notwithstanding the uncertain empirical relationship between liberalization and growth is that financial development is a concomitant of growth,

    There is mounting evidence of the relationship between “financial development” and plutocracy.

    I also wonder to what extent “growth” is a function of credit expansion and cheap oil.

    Can the OECD economies really grow when oil is $120 a barrel, not to mention saddled with debt?

  6. paul quigley Says:

    ‘For countries that have to manage the macroeconomic and financial stability risks associated with inflow surges or disruptive outflows, a key role needs to be played by macroeconomic policies, including monetary, fiscal, and exchange rate management, as well as by sound financial supervision and regulation and strong institutions. In certain circumstances, capital flow management measures can be useful. They should not, however, substitute for warranted macroeconomic adjustment.’

    Official Ireland has made a royal hames of it on every count above.

    ‘Very tightly linked currency regimes, like dollarization and currency boards, act like the gold standard to force a tight link between local conditions and changes in the monetary policies of the rich-country financial centres. Small changes at the centre can have drastic effects on the periphery’.

    http://www.amazon.com/Volatility-Machine-Emerging-Economics-Financial/dp/0195143302

    The big euro players blew us up like a balloon. Probably conceived, as Dork says, on Wall St. Nul points Irelande.

  7. grumpy Says:

    @paul q

    “The big euro players blew us up like a balloon.”

    Bill Clinton claimed he smoked pot but didn’t inhale. Can Ireland really try the same line?

    BTW, nobody, at this point should have been prompted by the above to think of ML.

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