 Issues Relating to the Treatment of Capital Movements in the IMFAziz Ali Mohammed Chapter 7 in Capital Account Regimes and the Developing Countries, 1998, pp 211-219 from Palgrave Macmillan Abstract: Abstract The role of the International Monetary Fund in relation to capital movements has been under intensive discussion in 1997. Under the Articles of Agreement, a ‘member may not use the Fund’s general resources to meet a large or sustained outflow of capital … and the Fund may request a member to exercise controls to prevent such use’ (Article VI, Section 1(a)). In a world of rapidly growing but volatile capital flows and increasingly integrated capital markets, there is a vast potential for balance-of-payments difficulties emanating from the capital account. The current Article poses an apparent constraint on the ability of the Fund to help member countries whose policies might otherwise merit Fund support. Moreover, the widespread acceptance of the convertibility obligations of Article VIII has made the imposition of capital controls an untenable general prescription for the Fund to recommend, given the practical difficulties of distinguishing current from capital transactions in many developing countries. Keywords: Capital Account; Capital Movement; Capital Outflow; Current Transaction; Inatory Authority (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-26789-7_7 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-26789-7_7 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.