MANAGEMENT OF CAPITAL FLOWS: COMPARATIVE EXPERIENCES AND IMPLICATIONS FOR AFRICA

The increasing international mobility of private financial flows is a major aspect of the contemporary global economy, where the volume of cross-border financial transactions far exceeds the level that is necessary to finance foreign trade and investment. Efforts to integrate the sub-Saharan African region into the global financial system have resulted not only in increased inflows of such capital but also in greater macroeconomic volatility, with consequences for exchange rate instability and misalignments.

The seven papers in this volume cover many aspects of the debate, notably how capital-importing developing countries should formulate policies to cope with international capital flows.