Gone with the Flow. Are free capital bonanzas good for development?

Published on 1 June 1998

When the then British Chancellor Kenneth Clarke proposed in 1996 that the International Monetary Fund should amend its articles of agreement to encourage the liberalisation of capital flows, it seemed an uncontroversial idea that would merely rubber-stamp existing practice. But in the wake of the financial crises that have swept Asia in the last 12 months, the wisdom of letting capital flow in and out of a country unimpeded no longer seems self-evident.

Publication details

Chote, R.
id21 Insights, issue 26