THE LEGITIMACY OF CAPITAL CONTROLS DURING A RETREAT FROM GLOBALISATION
Abstract Capital controls—measures taken to regulate the outflow or inflow of capital—are employed by governments to maintain financial stability and prevent or mitigate the effects of economic crises. For many decades capital controls were out of favour among economists and policymakers. Of late, h...
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crcambridgeupr:10.1017/s0020589320000433 2024-09-15T18:13:58+00:00 THE LEGITIMACY OF CAPITAL CONTROLS DURING A RETREAT FROM GLOBALISATION Mercurio, Bryan Buckley, Ross Fu, Erin Jiangyuan 2020 http://dx.doi.org/10.1017/s0020589320000433 https://www.cambridge.org/core/services/aop-cambridge-core/content/view/S0020589320000433 en eng Cambridge University Press (CUP) https://www.cambridge.org/core/terms International and Comparative Law Quarterly volume 70, issue 1, page 59-101 ISSN 0020-5893 1471-6895 journal-article 2020 crcambridgeupr https://doi.org/10.1017/s0020589320000433 2024-08-21T04:02:29Z Abstract Capital controls—measures taken to regulate the outflow or inflow of capital—are employed by governments to maintain financial stability and prevent or mitigate the effects of economic crises. For many decades capital controls were out of favour among economists and policymakers. Of late, however, they have become acceptable, if somewhat controversial, tools of financial policy, with the International Monetary Fund stating that ‘in certain circumstances, [capital controls] can be useful to support macroeconomic adjustment and safeguard financial stability’. Yet, little is known about the legality of capital controls under the various international treaties and rules of international organisations. This article introduces capital controls, traces their evolution over time, considers the success of short-term and long-term controls implemented in Chile, Malaysia, Iceland and China, and examines the consistency of selected controls with international rules and obligations. We suggest treaty language will be the critical factor in determining the legality of a particular capital control under a trade or investment agreement. Article in Journal/Newspaper Iceland Cambridge University Press International and Comparative Law Quarterly 70 1 59 101 |
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Cambridge University Press |
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crcambridgeupr |
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English |
description |
Abstract Capital controls—measures taken to regulate the outflow or inflow of capital—are employed by governments to maintain financial stability and prevent or mitigate the effects of economic crises. For many decades capital controls were out of favour among economists and policymakers. Of late, however, they have become acceptable, if somewhat controversial, tools of financial policy, with the International Monetary Fund stating that ‘in certain circumstances, [capital controls] can be useful to support macroeconomic adjustment and safeguard financial stability’. Yet, little is known about the legality of capital controls under the various international treaties and rules of international organisations. This article introduces capital controls, traces their evolution over time, considers the success of short-term and long-term controls implemented in Chile, Malaysia, Iceland and China, and examines the consistency of selected controls with international rules and obligations. We suggest treaty language will be the critical factor in determining the legality of a particular capital control under a trade or investment agreement. |
format |
Article in Journal/Newspaper |
author |
Mercurio, Bryan Buckley, Ross Fu, Erin Jiangyuan |
spellingShingle |
Mercurio, Bryan Buckley, Ross Fu, Erin Jiangyuan THE LEGITIMACY OF CAPITAL CONTROLS DURING A RETREAT FROM GLOBALISATION |
author_facet |
Mercurio, Bryan Buckley, Ross Fu, Erin Jiangyuan |
author_sort |
Mercurio, Bryan |
title |
THE LEGITIMACY OF CAPITAL CONTROLS DURING A RETREAT FROM GLOBALISATION |
title_short |
THE LEGITIMACY OF CAPITAL CONTROLS DURING A RETREAT FROM GLOBALISATION |
title_full |
THE LEGITIMACY OF CAPITAL CONTROLS DURING A RETREAT FROM GLOBALISATION |
title_fullStr |
THE LEGITIMACY OF CAPITAL CONTROLS DURING A RETREAT FROM GLOBALISATION |
title_full_unstemmed |
THE LEGITIMACY OF CAPITAL CONTROLS DURING A RETREAT FROM GLOBALISATION |
title_sort |
legitimacy of capital controls during a retreat from globalisation |
publisher |
Cambridge University Press (CUP) |
publishDate |
2020 |
url |
http://dx.doi.org/10.1017/s0020589320000433 https://www.cambridge.org/core/services/aop-cambridge-core/content/view/S0020589320000433 |
genre |
Iceland |
genre_facet |
Iceland |
op_source |
International and Comparative Law Quarterly volume 70, issue 1, page 59-101 ISSN 0020-5893 1471-6895 |
op_rights |
https://www.cambridge.org/core/terms |
op_doi |
https://doi.org/10.1017/s0020589320000433 |
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International and Comparative Law Quarterly |
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70 |
container_issue |
1 |
container_start_page |
59 |
op_container_end_page |
101 |
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1810451745217708032 |