Should Financial Flows Be Regulated? Yes

Gerald Epstein

Working Papers from United Nations, Department of Economics and Social Affairs

Abstract: As the international financial crisis spreads, some governments are using “unconventional tools” of monetary and financial policy to protect themselves. Should policies to control international capital flows be part of the government “toolkit” in these difficult times? This essay answers: YES. It describes the economic arguments for and against using capital controls, prudential regulations and other “capital management techniques” to manage international financial flows, presents empirical evidence on their impacts, and describes the variety of policies that many countries have successfully applied to enhance macroeconomic and financial stability, create policy space, and achieve other national development goals.

Keywords: Sub-sovereign bonds; infrastructure finance; issuers; investors; financial sector; municipal finance (search for similar items in EconPapers)
JEL-codes: E5 F3 F4 O1 O16 O19 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2009-07
New Economics Papers: this item is included in nep-fdg, nep-mac, nep-pke and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:une:wpaper:77

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