The International Regulatory Regime on Capital Flows

Federico Lupo Pasini

Research output: Working paper


Capital controls and exchange restrictions are used to restrict international capital flows during economic crises. This paper looks at the legal implications of these restrictions and explores the current international regulatory framework applicable to international capital movements and current payments. It shows how international capital flows suffer from the lack of a comprehensive and coherent regulatory framework that would harmonize the patchwork of
multilateral, regional, and bilateral treaties that currently regulate this issue. These treaties include the Articles of Agreement of the International Monetary Fund (IMF Articles), the General Agreement on Trade in Services (GATS), free-trade agreements, the European Union treaty, bilateral investment treaties, and the Organization for Economic Co-operation and Development (OECD) Code of Liberalization of Capital Movements (OECD Code of Capital Movement). Each
of these instruments regulate differently capital movements with little coordination with other areas of law. This situation sometimes leads to regulatory overlaps and conflict between different sources of law. Given the strong links between capital movements and trade in services, this paper pays particular attention to the rules of the GATS on capital flows and discusses the policy space available in the GATS for restricting capital flows in times of crisis.
Original languageEnglish
PublisherAsian Development Bank Institute
Number of pages27
Publication statusPublished - Dec 2011

Publication series

NameADBI Working Paper Series
PublisherAsian Development Bank Institute


  • WTO
  • IMF
  • International Economic Law
  • capital flow
  • capital movement
  • capital controls
  • international payment

ASJC Scopus subject areas

  • Law
  • Economics and Econometrics


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