...include capital controls, according to a short paper from the St. Louis Fed that can be found here.
The punch line of the argument:
Surely free capital flows, like free trade in goods, carry large
benefits. Yet the proposition that trade in dollars carries no
more risk than trade in goods remains controversial. If regulating internal debt accumulation is important for limiting
systemic risks, then regulating external debt accumulation
should be similarly important. Moreover, measures targeted
at specific capital flows, such as short-term external debt,
do not exclude the benefits of capital flows in the form of
foreign direct investment and other equity flows.
Thursday, September 01, 2011
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