The countries of Central and Eastern Europe went from being largely closed to being largely open to international capital flows. This paper discusses their experience with capital account liberalization and coping with large capital inflows. We start with a discussion of basic economic...

This paper examines capital controls in two ways. First, it assesses whether capital controls have an economic justification within the context of an economyâ  s and, in particular, its financial sectorâ  s stage of development. It concludes that capital controls can be justified...

The countries of Central and Eastern Europe went from being largely closed to being largely open to international capital flows. This paper discusses their experience with capital account liberalization and coping with large capital inflows. We start with a discussion of basic economic...