Policy space for capital controls and macroeconomic stability: lessons from emerging economies
Issues of interest in this paper include a review of the policy options for managing capital flows. What is the place and relevance of capital controls for addressing macroeconomic stability concerns in an environment of increasing capital inflows? What policy space is available for adoption of capital controls in an environment of global financial market volatility? Does implementation of capital controls create policy space for independent monetary policy to address macroeconomic instability concerns? How have emerging market economies addressed the challenges?