Capital controls: the recent reorientation of mainstream economics and the structuralist- Keynesian approach
Abstract
The article discusses capital controls in the mainstream economics view and the Keynesian-structuralist approach, arguing that although mainstream economics' recent reorientation on capital controls is notable, this new approach remains incomplete because it does not recognize the asymmetries inherent to the contemporary International Financial-Monetary System and its effects on economies. Therefore, the paper explains why mainstream economics advocates the use of capital controls only temporarily while the Keynesian-structuralist approach supports the use of permanent capital controls by countries, especially peripheral ones.
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