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Architecture Capital Controls 1. Controls on outflows unlikely to work 2. Controls on inflows may prevent lending boom and financial crisis, but cause distortions Role of IMF 1. There is a need for international lender of last resort (ILLR) and IMF has played this role 2. ILLR creates moral hazard problem 3. IMF needs to limit moral hazard Lend only to countries with good bank supervision 4. Need to do ILLR role fast and infrequently 11 169。 2023 Pearson Education Canada Inc. Moary Policy: International Considerations 1. Direct effects of FX market When intervene, MB changes 2. Balance of payments considerations When B of P is in deficit need Ms ? 3. Exchange rate considerations When want lower E, need Ms ? 12 169。 2023 Pearson Education Canada Inc. 謝謝觀看 /歡迎下載 BY FAITH I MEAN A VISION OF GOOD ONE CHERISHES AND THE ENTHUSIASM THAT PUSHES ONE TO SEEK ITS FULFILLMENT REGARDLESS OF OBSTACLES. BY FAITH I BY FAITH