This note discusses the challenges that emerging markets face in managing capital flow volatility. The note lays out a … conceptual framework for evaluating deviations from a first-best world in which capital flows have desirable characteristics, and …

This note discusses capital controls using insights from the trade policy literature. It highlights some key issues … many goods and services are. As a result, much of the analysis pertaining to trade and trade policy in goods and services … applies with equal force to capital movements. Free trade is typically the best trade policy, no matter whether it is trade in …