The IMF should end its Washington consensus policies and encourage Brazil to strengthen, not eliminate, capital controls
Kevin Gallagher
guardian.co.uk
Thursday 10 December 2009 20.00 GMT
In an effort to stem the appreciation of its currency, the real, Brazil has twice resorted to capital controls. In response to these measures, IMF head Dominique Strauss-Kahn says capital controls are “not something that come from hell”, but the IMF won’t be recommending them any time soon to remedy the current crisis.
Enough is enough. Given the economic evidence and in the wake of the current crisis, the IMF should change more than its rhetoric and do away with its Washington consensus policies by encouraging Brazil to strengthen its capital controls, not eliminate them. (more…)
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