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IMF Releases Report On Benefits of Easing Capital Controls

The International Monetary Fund Executive Board released a report today recommending easing controls on capital flows and calling on China and India to speed such financial “liberalization.”

“The IMF staff paper is a further building block in formulating a comprehensive, flexible, and balanced approach for the management of capital flows,” the fund said today in a news release.

The Washington-based IMF said that officials should manage capital flows during a crisis only as a supplement to adjustments of government policy.

The G-20 requested that the IMF study capital flows. The report is the fourth in a series developed by the fund on the issue.

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