Gallagher in Bretton Woods Project on IMF Policies
Kevin Gallagher, Professor of Global Development Policy at the Frederick S. Pardee School of Global Studies at Boston University, discussed a recent article written by International Monetary Fund (IMF) staff in June’s edition of the IMF’s in-house magazine, Finance & Development’s (F&D), that appeared to question orthodox macroeconomic policies long associated with the IMF.
From the text of the article:
The authors found that removing capital controls contributes to “raising the odds of a [financial] crash”, concluding that the use of capital controls should be considered both “viable” and sometimes the “only” tool to use. They noted, however, that countries should only use capital controls when faced with “an unsustainable credit boom” driven by direct borrowing from abroad. Kevin Gallagher of Boston University remarked that this means that “on the capital account the IMF has started to put economics over ideology, which is a big step in the right direction.”
Kevin Gallagher is the co-chair of the Task Force on Regulating Capital Flows and has served as an advisor to the Department of State and the Environmental Protection Agency in the United States, as well as to the United Nations Conference on Trade and Development. Gallagher has been a visiting or adjunct professor at the School for Advanced International Studies at Johns Hopkins University, the Fletcher School of Law and Diplomacy; El Colegio de Mexico in Mexico; Tsinghua University in China, and the Center for State and Society in Argentina.