Capital Controls and International Economic Law

Explores the IMF's mandate over capital flows and analyses whether capital controls are consistent with international trade and investment agreements.

Bryan Mercurio (Author)

9781316517437, Cambridge University Press

Hardback, published 1 June 2023

220 pages
23.5 x 15.8 x 1.9 cm, 0.49 kg

'Bryan Mercurio's new book provides a fascinating and excellently written study of the changes of the IMF's dealing with capital controls in the past decades, and its relationship with international economic law. It convincingly demonstrates that necessary capital controls are not in an unresolvable conflict with countries' obligations under WTO or investment law. This is an important finding, in particular in a time where we do see increasing investment controls for public security reasons around the globe.' Christoph Herrmann, Chair Professor of Constitutional and Administrative Law, European Law, European and International Business Law, University of Passau

Focusing on capital controls, this study provides rigorous legal analysis to establish whether the mandate of the International Monetary Fund (IMF) extends to the capital account; that is, whether the IMF has the authority to control and/or regulate the use of capital controls by its member states. The book then analyses whether a country's use of capital controls is consistent with the obligations and commitments undertaken in various multilateral and bilateral trade and investment agreements. Finally, it analyses the tension within international economic law, as the IMF now encourages the use of capital controls under certain circumstances, while most trade/investment agreements prohibit or limit their use. Proposing a way forward to alleviate the tension and construct a more harmonious relationship between the norms and standards of finance, trade and investment, this study will be essential reading for policymakers.

Part I. Key Concepts: Capital Flows and Controls
1. The Liberalisation of capital flows
2. Capital flow management, measures
Part II. The IMF, Capital Flows and Controls
3. Shifting the IMF mandate
4. The Legality of the IMF's mandate expansion
Part III. Legal Frameworkss, Rules and Conflicts
5. The multilateral trade framework
6. Bilateral and regional trade agreements
7. International investment agreements
8. Conclusions.

Subject Areas: International economic & trade law [LBBM]