Global financial reform and trade rules: the need for reconciliation
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In the wake of the global financial crisis, many economists and policymakers are advocating the use of regulations to control the cross-border flows of capital. However, such capital account regulations (known as CARs) often are limited or prohibited by commonly-used provisions in trade and investment treaties. This policy brief describes the outcomes of a “compatibility review” between the ability to implement capital account regulations and standard provisions of the global trading system. It argues that changes should be made so that the two systems are more compatible, providing countries – especially developing countries – with the policy space to employ CARs to stabilize their economies and stave off boom-and-bust cycles and still participate in bi-lateral and multi-lateral trade and investment treaties.
This repository item contains a single issue of Issues in Brief, a series of policy briefs that began publishing in 2008 by the Boston University Frederick S. Pardee Center for the Study of the Longer-Range Future.