IDST 3100Y Lecture Notes - Lecture 4: Commercial Policy, Labour Power, Pound Sterling
4 Mar 2016
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Document Summary
Critique of neoliberal view of private capital flows. Example: china keeps its currency low in value to improve exports. Markets are at least as apt as governments to allocate international capital flows in an inefficient wasteful or developmentally unproductive manner. There is evidence that well designed capital controls have played an important role during crucial times or periods in the development process positive impact on economic development. Capital controls manage the volume, composition or allocation of capital flows and/or maintenance of restrictions on investor enterance or exit opportunities nearly all countries in the global north used capital controls during development and post war reconstruction. Debt items capital exports, the purchase of financial items from foreigners. Credit items capital imports, the sale of financial items to foreigners a country will offset a current account deficit through foreign investment or an inflow of funds into its capital account.
