This study aims to identify the need for ambiguity as a result of mixed and contradictory suggestions of the trade agreement and capital liberalisation on a country’s welfare. Using more comprehensive datasets on inflow and outflow capital control, we find significant and mixed capital control...

Capital flows have increased significantly in recent years and are a key aspect of the global monetary system. They offer potential benefits to countries, but their size and volatility can also pose policy challenges. The Fund needs to be in a position to provide clear and consistent advice with...

This paper explores how the sudden stop in capital flows to emerging market economies associated with the Covid-19 pandemic unfolded, the substantial policy responses that were needed to alleviate it, and the lessons we might draw from this episode. We identify four areas where further work...