IMF Reverses Position on Capital Controls

After decades of unwavering support for the free flow of money, the IMF has reversed itself and outlined a framework detailing the circumstances under which it can endorse capital controls. The move comes as countries such as Brazil, South Korea and Turkey limit flows in an effort to control inflation, halt the rise in their own currencies, or prevent bubbles in their stock and real-estate markets. However, while IMF chief Dominique Strauss-Kahn calls the shift in policy ‘very pragmatic,’ some of its board members are opposed to the plan, including the executive director representing several countries in Latin America and the Caribbean.

via IMF Reverses Position on Capital Controls – WSJ.com.

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