Quick post here to continue the theme of Christine Lagarde doing a complete makeover of the IMF. Yesterday, the Financial Times reported on an IMF staff paper that accepted capital controls as a necessary evil in specific cases, a sharp contrast to the liberalisation dogmatism that characterised IMF policy views during the 1990s. The paper does speak to the need to make controls “targeted, transparent, and generally temporary”. Nonetheless, I believe this is a significant policy shift that will have wider implications down the line.
[Content protected for Gold members only]