The International Regulatory Regime on Capital Flows

Federico Lupo Pasini

Research output: Working paper

Abstract

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
Pages1-27
Number of pages27
Publication statusPublished - Dec 2011

Publication series

NameADBI Working Paper Series
PublisherAsian Development Bank Institute
No.338

Fingerprint

capital movement
GATS
treaty
IMF
OECD
international capital movement
source of law
Capital movements
Capital flows
Regulatory regime
free trade
economic crisis
liberalization
Treaties
General Agreement on Trade in Services (GATS)
Law
lack

Keywords

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

Cite this

Lupo Pasini, F. (2011). The International Regulatory Regime on Capital Flows. (pp. 1-27). (ADBI Working Paper Series; No. 338). Asian Development Bank Institute.
Lupo Pasini, Federico. / The International Regulatory Regime on Capital Flows. Asian Development Bank Institute, 2011. pp. 1-27 (ADBI Working Paper Series; 338).
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Lupo Pasini, F 2011 'The International Regulatory Regime on Capital Flows' ADBI Working Paper Series, no. 338, Asian Development Bank Institute, pp. 1-27.

The International Regulatory Regime on Capital Flows. / Lupo Pasini, Federico.

Asian Development Bank Institute, 2011. p. 1-27 (ADBI Working Paper Series; No. 338).

Research output: Working paper

TY - UNPB

T1 - The International Regulatory Regime on Capital Flows

AU - Lupo Pasini, Federico

PY - 2011/12

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N2 - 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 ofmultilateral, 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). Eachof 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.

AB - 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 ofmultilateral, 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). Eachof 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.

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Lupo Pasini F. The International Regulatory Regime on Capital Flows. Asian Development Bank Institute. 2011 Dec, p. 1-27. (ADBI Working Paper Series; 338).