Reconciling IMF Rules and International Investment Agreements: An Innovative Derogation for Capital Controls
Columbia FDI Perspectives No. 78
3 Pages Posted: 24 Jan 2013
Date Written: September 10, 2012
In the absence of an international framework governing capital controls, a conflict has developed due to the different approaches towards such controls taken by various international organizations and international investment agreements (IIAs). This Perspective argues that IIAs should incorporate derogations for countries when treaty obligations conflict with IMF recommendations to impose controls in response to severe economic hardship.
Keywords: IIAs, investment agreements, capital controls, IMF
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