Hélène Rey offers advice on achieving monetary ‘emancipation’
Authorities may have to consider capital controls to break free from global financial forces, economist says
Open economies lose much of their monetary autonomy to global capital flows, and policy-makers need to take action if they are to achieve “emancipation”, Hélène Rey said on December 14.
The professor from the London Business School said a flexible exchange rate was likely not enough to insulate economies from volatile capital flows. In the lecture at the Reserve Bank of India, Rey urged authorities to consider capital controls as a means of “managing the global financial cycle”.
Capital
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