IMF eases thoughts on capital controls

IMF sealThe International Monetary Fund is apparently rethinking some of its long-held ideas about how unfettered capital flows between countries are “a fundamentally benign phenomenon.”  International relations Professor Kevin Gallagher, co-author of “Capital Controls and 21st Century Financial Crises,” says it’s about time the IMF sees that some capital controls are useful and necessary.

The U.S. National Bureau of Economic Research published an assessment in 2007 that came to the same conclusion.  Now, the challenge for both the IMF and the United States is to ‘practice what you preach.’ The U.S. needs to put its policy on capital controls in tune with economic science.”

Contact Kevin Gallagher, 617-353-9348, kpg@bu.edu

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