Analyzing the IMF’s “New” Institutional View for Regulating International Capital Flows Using Minsky and Kregel: Do They Finally Get It?

• Main Author: Devin T. Rafferty
• Format: Article in Journal/Newspaper
• Language: unknown
• Subjects: North Atlantic
• Online Access: http://hdl.handle.net/10.1080/08911916.2017.1385958

In the wake of the North Atlantic Financial Crisis, the IMF’s Institutional View noticeably shifted toward a much greater acceptance of capital flow management measures to regulate international capital flows. This raises a host of issues—most importantly, whether its new policy stance is finally consistent with the needs developing economies have for ensuring financial stability. That is the topic examined in this article. To do so, we compare the substance and results of a Minsky-Kregel model of international financial fragility to that of the IMF’s “New” Institutional View. We find that while the IMF has come a long way in its recognition of the efficacy of capital flow management measures, there still remains an even further way to go.