Despite Pressures, Officials Untempted by Capital Controls

Mar 4, 2013

LatAm government officials insist they will continue to avoid currency controls even as inflows continue, with investors remaining comfortable that policies will largely avoid “currency war” tactics. Capital flows to EM have returned sharply since the end of last year, thanks to easy monetary policy in mature economies and the continued prospect of higher yields in emerging economies. “Taxing foreign capital is not an avenue we would like to pursue. We have not considered it yet,” Felipe Larrain,...

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