Development and Growth

One salient feature of the global economy over the last 20 years has been the embrace by developing countries of financial reforms, leading to growing opening of capital accounts. The adjustment process to financial integration has been rocky: growing financial opening frequently has been associated with financial crises. Literature on the subject has led to a spirited debate concerning the wisdom of unrestricted capital mobility between the OECD and emerging markets.(2)...

It is often argued that the provision of liquidity by the international institutions such as the IMF to countries...