Gallagher and Ocampo Argue for Increased IMF Regulation of Global Capital Flows
Kevin Gallagher, Professor of Global Development Policy at Boston University’s Frederick S. Pardee School of Global Studies and Director of BU’s Global Development Policy Center (GDP Center), published an article for the Organisation for Economic Co-operation and Development’s Development Matters arguing for expanded regulation of global capital flows both nationally and internationally.
The article, titled “The IMF and the capital account: Another step forward but still out of step,” was co-authored by Gallagher and José Antonio Ocampo, Professor at Columbia University and former UN Under-Secretary-General for Economic and Social Affairs and Finance to the G20. In their piece, the two argue that the International Monetary Fund’s (IMF) institutional review of capital account regulation went one step forward in recognizing that regulating inflows can play a prudential role; however, this action was still short in other areas. Gallagher and Ocampo posit that the IMF’s review is still out of step; advances in economic theory prove regulations make global markets more efficient, not less, and regulations on capital flows should be part of the regular toolkit to manage financial stability risks.
The full article can be read on Development Matters‘ website.
Kevin Gallagher is a professor of global development policy at Boston University’s Frederick S. Pardee School of Global Studies, where he directs the Global Development Policy Center. He is the author or co-author of numerous books, including most recently, The Case for a New Bretton Woods (Wiley, 2022). Read more about Professor Gallagher on his Pardee School faculty profile.