Capital inflows x controls (Ostry et alli)

Jonathan D. Ostry, Atish R. Ghosh, Karl Habermeier, Marcos Chamon, Mahvash S. Qureshi, and Dennis B. Reinhardt published Capital Inflows: The Role of Controls, this paper reviews the arguments on the appropriate management of inflow surges and focuses in particular on the conditions under which controls may be justified. A key conclusion is that, if the economy is operating near potential, if the level of reserves is adequate, if the exchange rate is not undervalued, and if the flows are likely to be transitory, then use of capital controls. ver: http://www.imf.org/external/pubs/ft/spn/2010/spn1004.pdf