S-Space College of Social Sciences (사회과학대학) Institute of Economics Research (경제연구소) Seoul Journal of Economics Seoul Journal of Economics vol.17(1) (Spring 2004)
Capital Control as a Safeguard in the Capital Account Crisis
- Lee, ChonPyo
- Issue Date
- Seoul Journal of Economics, Vol.17 No.1, pp. 25-54
- Many emerging market economies suffered from financial crisis mainly caused by capital account imbalances. Main recommendations for preventing crises were to keep the house clean, maintain transparency and good governance, and sound management of macroeconomic policies. It is observed that in the area of finance there is no safeguard measure, whereas in the area of trade there are a few: while the current account imbalances have less severe effects than the capital account imbalances. Thereupon, it is suggested that at least a safeguard measure can be introduced in the area of finance, and capital control is suggested as an emergency safeguard.