New Pardee Center Task Force Report on Financial Regulations and the Trading System

The Frederick S. Pardee Center for the Study of the Longer-Range Future has published a new Task Force Report titled Capital Account Regulations and the Trading System: A Compatibility Review.

The report is the second publication of the Pardee Center Task Force on Regulating Capital Flows for Long-Run Development, and builds on the Task Force´s first report published in March 2012. The new report is the outcome of a workshop the Pardee Center co-sponsored last June in Buenos Aires, Argentina with the Center for the Study of State and Society (CEDES) in Argentina and the Global Development and Environment Institute (GDAE) at Tufts University. The workshop brought together  experts who looked specifically at the relationship between global financial regulations and the global trading system.

The June 2012 workshop participants reviewed agreements at the World Trade Organization (WTO) and various Free Trade Agreements (FTAs) and Bilateral Investment Treaties (BITs) for the extent to which the trading regime is compatible with the ability to deploy effective capital account regulations (CARs). The new report presents the findings of that review, and highlights a number of potential incompatibilities found between trade and investment treaties and the ability to deploy CARs. Like the first Task Force report, it was written by an international group of experts whose goal is to help inform discussions and decisions by policymakers at the International Monetary Fund and elsewhere that will have implications for the economic health and development trajectories for countries around the world.

Pardee Faculty Fellow Kevin P. Gallagher convened the workshop and oversaw the development of the report in collaboration with Leonardo E. Stanley of CEDES. The Task Force and its publications are part of the Global Economic Governance Initiative (GEGI), a joint program of the Pardee Center and the Boston University Center for Finance, Law and Policy. Prof. Gallagher is the director of GEGI.

The report may be downloaded as a PDF file here.  Hard copies may be requested by contacting the Pardee Center.