Capital Controls
Subtitle: A `Cure' Worse Than the Problem
Publisher: Inst of Economic Affairs
Published: August 2002
Language: eng
Format: Paperback
Number of pages: 111
ISBN-13: 9780255365062
Subjects: Education; Finance; International - General; Business & Economics; Business/Economics
Description: "Free capital movements played an important part in the economic integration and globalisation of the nineteenth century. By the end of the century, capital flows were on a remarkable scale." "The modern use of capital controls dates back to the 1930s. Professor Capie analyses historical experience with capital controls, in Britain and elsewhere, and reviews the theory. He concludes that such controls are damaging and that there is no case for reviving them, as some economists have suggested and as anti-globalisers would wish. Capital mobility improves the worldwide allocation of resources, channelling resources to their most productive uses. Controls on capital movements result in deadweight losses and bureaucratic costs. They are difficult to remove and they damage the credibility of the government's commitment to a market economy."--BOOK JACKET.