Coping with International Capital Flows

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Private capital flows to developing countries have increased dramatically in the 1990s. The authors identify key concerns about the sustainability and volatility of these flows and make a number of recommendations for national macroeconomic management including improving crisis prevention measures.



Country Policies to Limit Capital Inflows

We have discussed the macroeconomic policy responses to capital inflows in Chapter 5. There is a second category of policies that seek to deal directly with the capital inflows themselves. IMF (1995, p. 12) summarises the policies of both types tried by nine different developing countries over the past several years.


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