Issues in Capital Account Convertibility in Developing Countries

Benu Schneider

Development Policy Review, 2001, vol. 19, issue 1, 31-82

Abstract: This article examines the pace, sequencing and preconditions of capital account liberalisation, drawing lessons from the experience of twelve countries, and focusing on the inter‐relationships between open capital and current accounts, the financial sector and the conduct of macro policies. It distinguishes between prudential limits and capital controls and discusses the effectiveness of direct and price controls. It makes a case for intermediate regimes with respect to exchange‐rate policy. It concludes that developing countries need to adopt a gradualist approach to the opening up of the capital account, outlining three strategies and highlighting that the capital account is only one aspect of a comprehensive reform package.

Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1111/1467-7679.00124

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:devpol:v:19:y:2001:i:1:p:31-82

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0950-6764

Access Statistics for this article

Development Policy Review is currently edited by David Booth

More articles in Development Policy Review from Overseas Development Institute Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().