From: Yona Maro

The global financial crisis has triggered a transformation in thinking and practice regarding the role of government in managing international capital flows. This paper traces and evaluates the re-emergence of capital controls as legitimate tools to promote financial stability. Whereas capital controls were seen as “orthodox” by the framers of the Bretton Woods system, they were shunned during the neo-liberal era that began in the late 1970s.

The fact that capital controls continue to yield positive results is truly remarkable, given the fact that there has been little (or contrary) support for global coordination, and that many nations lack the necessary institutions for effective policies. The paper concludes by pointing to the need for more concerted global and national efforts to manage global capital flows for stability and growth.

http://www.ase.tufts.edu/gdae/Pubs/rp/KGCapControlsPERIFeb11.pdf

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