This paper reviews the experience with capital controls in industrial and developing countries, considers the policy … issues raised when the effectiveness of capital controls diminishes, examines the medium-term benefits and costs of an open … capital account, and analyzes the policy measures that could help sustain capital account convertibility. As the effectiveness …

The prolonged investment decline in post-Asian crisis emerging Asia, in contrast to the swift recovery of economic …

Standard theoretical arguments tell us that countries with relatively little capital benefit from financial integration … as foreign capital flows in and speeds up the process of income convergence. We show in a calibrated neoclassical model …. The welfare gain from switching from financial autarky to perfect capital mobility is roughly equivalent to a 1 percent …

effects of foreign aid. If capital is perfectly mobile between sectors, untied aid has no longrun impact on the real exchange … employs extensive numerical simulations, emphasizes the tradeoffs between real exchange adjustments, long-run capital …

private domestic investment (PDI) is sensitive to the cost of capital. Public policy designed to raise PDI should focus on … creating conditions for a lower cost of capital. The focus should be on removing barriers to lower real interest rates, rather …