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Capital Account (1138 words) |
 | The net capital inflow is represented by a capital account surplus equivalent in magnitude to the current account deficit plus the increase in foreign reserves. |
| The net capital outflow is represented by a capital account deficit equivalent in magnitude to the current account surplus increased by the amount of reserves lost. |
| The graph extrapolates the trends exhibited by the current and capital accounts to the end of 1998 under the assumption that economic conditions for Q4 were not significantly different from Q3. |
| Finance & Development, December 1998 - Capital Account Liberalization and the IMF (2602 words) |
| In the wake of the Asian crisis, which has seen sharp reversals of capital flows for a number of countries, officials and academics alike have questioned how desirable capital account liberalization is and whether it is advisable to vest the IMF with responsibility for promoting the orderly liberalization of capital flows. |
| Correspondingly, capital account convertibility means the removal of foreign exchange and other controls, but not necessarily all tax-like instruments imposed on the underlying transactions, which need not be viewed as incompatible with the desirable goal of capital account liberalization. |
| Capital account liberalization and financial liberalization more generally are inevitable for countries that wish to take advantage of the substantial benefits from participating in the open world economic system in today's age of modern information and communications technologies. |
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