The argument of this paper is that growing capital mobility is unavoidable. Domestic financial liberalization and the revolution in information and communications technologies make it much more difficult to stop capital flows at the border. Effective controls will therefore have to become...

I. Background. 1 Introduction -- 2 A century of capital flows -- II. Capital account liberalization. 3 Capital account liberalization : what do the cross-country studies tell us? -- 4 When does capital account liberalization help more than it hurts? with Carlos Arteta and Charles Wyplosz -- III....