Task Force On Regulating Global Capital Flows

in Uncategorized
March 2nd, 2012

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In the wake of the global financial crisis, nations, regions and global institutions are engaged in significant reform of their financial systems. This research effort analyzes the extent to which such efforts are consistent with the goals of financial stability, the generation of economic growth, and human development.

The Pardee Center Task Force on Regulating Global Capital Flows addresses important questions concerning whether and how capital investments between developed and developing countries should be “regulated” or “managed.” While investment is essential for the development process, a growing proportion of foreign investment in developing countries is in the form of short-term “hot” money that has been shown to be extremely volatile and leaves developing country financial systems very vulnerable.

In the wake of the global financial crisis and in the absence of subsequent global cooperation it is becoming increasingly understood that national governments need to deploy regulations to manage the flow of speculative capital such that it does not disrupt their long-run development prospects.

Although international institutions such as the International Monetary Fund are beginning to recognize this need, there currently are no set guidelines to help national governments respond to speculative capital and to consider the extent to which there should be global cooperation to manage capital flows.

The explicit goal of the Pardee Center Task Force is to put the concerns of developing countries and the process of economic development at center stage. The central question the Task Force addresses is: to what extent can capital account regulations be deployed by developing countries and coordinated at a global level so that they can enable financial stability for economic development?

Publications

Capital Flow Management and the Trans-Pacific Partnership Agreement

Financial Stability and the Trans-Pacific Partnership: Lessons from Chile and Malaysia

Safeguarding United States’ Trade and Investment Treaties for Financial Stability

Post-Crisis Capital Account Regulation in South Korea and South Africa

Task Force Report: Capital Account Regulations and the Trading System: A Compatibility Review

Task Force Report: Regulating Global Capital Flows for Long-Run Development

Issues in Brief No. 22: Capital Account Regulations for Stability and Development: A New Approach

Issues in Brief No. 24: Global Financial Reform and Trade Rules: The Need for Reconciliation

Navigating Volatile Capital Flows in Brazil and Chile

Opinion articles/Media

TPP Pact Requires Regulated Financing, Kevin P. Gallagher, Bangkok Post, October 7, 2013

Cons of Deregulating Finance, Kevin P. Gallagher, China Daily, August 6, 2013

China Should Rethink Deregulation, Kevin P. Gallagher, The Business Times Singapore, July 31, 2013

The U.S. as a Global Risk Generator, Kevin P. Gallagher, The Globalist, June 27, 2013.

IMF’s New View on Capital Controls, Kevin P. Gallagher and Jose Antonio Ocampo, Economic and Political Weekly, March 23, 2013.

“Everyone But China” Agreement Prevents Regulation of Hot Money and Speculation, Kevin P. Gallagher, TheRealNews.com, March 18, 2013.

Don’t trade away financial stability in the Trans-Pacific Partnership, Kevin P. Gallagher, Financial Times, March 6, 2013.

The IMF’s New Transfer Policy and the Trading System, Kevin P. Gallagher, Investment Treaty News, January 14, 2013.

Kevin P. Gallagher Quoted in Bloomberg Businessweek, December 4, 2012

Pardee Task Force member appointed to be the Executive Director of the IMF for India, India Times, Nov 4. 2012

The Silent Revolution Inside the IMF, Kevin P. Gallagher, The Globalist, October 30, 2012

Capital Controls: Counting the Costs, Sean Farrell, Emerging Markets, October 10, 2012

Trade rules should not constrain fixing global finance, Kevin P. Gallagher, Al Jazeera, September 26, 2012

Let’s not get carried away by Bernanke’s latest twist, Kevin P. Gallagher, Financial Times, September 25, 2012

Brazil: Emerging Markets Can Regulate Global Finance, Kevin P. Gallagher, Financial Times, July 10, 2012

Capital controls can stabilize developing nations, Thomas Kostigen, Wall Street Journal, June 22, 2012

Tired of Waiting for a 21st Century Trade Agreement: Developing Countries, the TPP, and Regulating Cross Border Finance, Kevin Gallagher, Triple Crisis, June 13, 2012

Historic Moment for the IMF, Kevin Gallagher, Stephany Griffith-Jones, and Jose Ocampo, Financial Times, May 29, 2012

House Democrats Urge Geithner To Permit Capital Controls By Trade Partners, Kevin Gallagher, Wall Street Journal, May 23, 2012

PolicyTalk: International Economic Development and Speculative Capital Flows, Kevin Gallagher, Global Policy TV, April 23, 2012

Cross-boarder financial regulation is justified now more than ever, Kevin Gallagher, The Guardian, April 19, 2012

Close the flood gates of speculative capital flows, Kevin Gallagher, Aljazeera, April 11, 2012

Currency surge sparks calls for tough capital controls, Sid Verma and John Rumsey, Emerging Markets, March 17, 2012

Not a Great Deal for Asia, Kevin P. Gallagher, The American Prospect, March 13, 2012.

At 65, the IMF is changing – for the better, Kevin P. Gallagher, Aljazeera, March 12, 2012.

Taming the liquidity tide, by Kevin P. Gallagher, Financial Times, March 8, 2012.

Malaysia needs to maintain capital regulation tools, by Michael Lim Mah Hui and Kevin P. Gallagher, The Edge, Malaysia, March 5, 2012

Capital controls are not beggar thy neighbour, by Kevin P. Gallagher, Financial Times, January 23, 2012.

The Myth of Financial Protectionism Kevin P. Gallagher on Global Policy TV, January, 2012.

The IMF must heed G20 decisions, by Kevin P. Gallagher, The Guardian, November 29, 2011.

The G-20′s Helpful Silence on Capital Controls, by Jose Antonio Ocampo, Stephany Griffith-Jones and Kevin P. Gallagher, Project Syndicate, October 2011.

Will the G-20 Control Hot Money?  Task Force Members Kevin Gallagher and Irene Grabel on the Real News Network, October 2011.

The Pros and Cons of Capital Controls, Federal Reserve Bank interview with Kevin Gallagher on EconSouth, September, 2011.

Events/Multimedia

CAFRAL-IPD Conference on “Capital Account Management and Macro-Prudential Regulation for Financial Stability and Growth,” January 13 – 14, 2014

UNCTAD-GEGI Workshop on Regulating Capital Flows, October 3 – 4, 2013

New Thinking on Capital Controls for Financial Stability: Implications for the Trade Regime, May 28 2013

Capital Account Regulations and the Trading System: A Compatibility Review, Pardee Podcast, April 23, 2013

Pardee House Seminar on Global Finance and Trade, April 12, 2013

Pardee House Seminar on Asia-Latin America Relationship, November 7, 2012

PowerPoint PDF from Pardee Center Seminar on Asia-Latin America Relationship, November 7, 2012

Pardee Center Co-Sponsors Workshop in Buenos Aires, June 29, 2012

Faculty Fellow Kevin Gallagher Presents Pardee Task Force Report to Brookings Institute, April 20, 2012

Faculty Fellow Kevin Gallagher Presents Pardee Task Force Report to the IMF, March 27, 2012

Task Force Members Discuss Task Force on Capital Controls at Pardee House Seminar, March 8, 2012

Report Launch for Task Force Report: Regulating Global Capital Flows for Long-Run Development, March 8, 2012

Kevin Gallagher Discusses Capital Controls on EconSouth Now, October 4, 2011

Pardee Center Luncheon with Featured Speaker, Paulo Nogueira Batista, Junior, September 16, 2011

Task Force on “Managing Capital Flows for Long-Run Development, September 16, 2011

Luncheon with, Paulo Nogueira Batista Junior, September 16, 2011

Related Publications

Navigating Volatile Capital Flows in Brazil and Chile, Initiative for Policy Dialogue, Columbia University, Brittany Baumann and Kevin P. Gallagher, June, 2012

The Global Governance of Capital Flows: New Opportunities, Enduring Challenges, PERI, UMass Amherst, Kevin Gallagher, April 31, 2012

Policy Brief: Regulating Global Capital Flows, G-24,  Kevin P. Gallagher, April 7, 2012

The Myth of Financial Protectionism: The New (and old) Economics of Capital Controls, PERI, UMass Amherst, Kevin P. Gallagher, January 2012.

Regaining Control? Capital Controls and the Global Financial Crisis, GDAE, Tufts University, Kevin Gallagher, February 2011

The overall aim of these efforts will be to enable developing nations to govern their financial systems in order to maintain financial stability for economic growth and development.  This project is a formal collaboration between the Pardee Center, the Global Development and Environment Institute at Tufts University (GDAE), the Initiative for Policy Dialogue at Columbia University, and the Center for the Study of State and Society (CEDES) in Argentina. This work is supported in part by the Ford Foundation.

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