“In Case of Emergency, Break-Open Glass”: The IMF’s “New” Institutional View, Financial Instability, and Financing Development Processes

• Published in: Review of Radical Political Economics
• Main Author: Rafferty, Devin Thomas
• Format: Article in Journal/Newspaper
• Language: English
• Published: SAGE Publications 2017
• Subjects: North Atlantic
• Online Access: http://dx.doi.org/10.1177/0486613417707932; https://journals.sagepub.com/doi/pdf/10.1177/0486613417707932; https://journals.sagepub.com/doi/full-xml/10.1177/0486613417707932

After the North Atlantic Financial Crisis, the International Monetary Fund (IMF) shifted towards a greater acceptance of capital controls (what it calls capital flow management measures) for regulating international capital flows with the publication of its “New” Institutional View. This begs the question of what such a change means for developing economies; specifically, whether the new framework addresses the needs they have for producing financial stability. That is the topic examined in this paper.