Sequencing Capital Account Liberalization: Lessons from the Experiences in Chile, Indonesia, Korea, and Thailand

115 Pages Posted: 15 Feb 2006

See all articles by R. Barry Johnston

R. Barry Johnston

International Monetary Fund (IMF)

Salim M. Darbar

International Monetary Fund (IMF)

Claudia Echeverria

affiliation not provided to SSRN

Date Written: November 1997

Abstract

This paper examines issues in sequencing and pacing capital account liberalization and draws lessons from experience in four countries (Chile, Indonesia, Korea, and Thailand). The paper focuses on the interrelationship between capital account liberalization, domestic financial sector reforms, and the design of monetary and exchange rate policy. It concludes that capital account liberalization should be approached as an integrated part of comprehensive reform strategies and should be paced with the implementation of appropriate macroeconomic and exchange rate policies.

Keywords: Financial sector reform, currency convertibility, capital flows

JEL Classification: E52, F21, F31, G28

Suggested Citation

Johnston, R. Barry and Darbar, Salim M. and Echeverria, Claudia, Sequencing Capital Account Liberalization: Lessons from the Experiences in Chile, Indonesia, Korea, and Thailand (November 1997). IMF Working Paper, Vol. , pp. 1-115, 1997. Available at SSRN: https://ssrn.com/abstract=882738

R. Barry Johnston (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Salim M. Darbar

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Claudia Echeverria

affiliation not provided to SSRN

No Address Available

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