Rethinking the economics of capital mobility and capital controls

AUTOR(ES)

Palley, Thomas I.

FONTE

Brazilian Journal of Political Economy

DATA DE PUBLICAÇÃO

2009-09

RESUMO

This paper reexamines the issue of international financial capital mobility, which is today's economic orthodoxy. Discussion is often framed in terms of the impossible trinity. That framing distorts discussion by representing capital mobility as having equal significance with sovereign monetary policy and control over exchange rates. It also distorts discussion by ignoring possibilities for coordinated monetary policy and exchange rates, and for managed capital flows. The case for capital mobility rests on neo-classical economic efficiency arguments and neo-liberal political arguments. The case against capital mobility is based on Keynesian macroeconomic inefficiency arguments, neo-Walrasian market failure arguments, and neo-Marxian arguments regarding distortion of the social structure of accumulation. Close examination shows the case for capital mobility to be extremely flimsy, pointing to the ideological dimension behind today's policy orthodoxy.

Documentos Relacionados

• Does Behavioral Economics substitute or complement Neoclassical Economics? Rethinking the behavioral revolution from a contextualist approach
• Current account and capital mobility hypothesis: Evidence from the G-7
• Financial disclosure and international capital mobility in Latin America
• Capital Mobility, Veto Players, and Redistribution in Latin America During the Left Turn
• Neoliberalism and global capital mobility: a necessary reconsideration of textbook trade theory