WASHINGTON (Reuters) – IMF member nations, acknowledging resistance from emerging markets to limits on capital controls, said rich nations’ policies that spur large capital outflows that could harm other economies also need oversight.
The steering committee of the International Monetary Fund, comprised of finance officials from around the world, addressed the increasingly contentious issue as emerging markets grapple with an inflationary inflow of “hot money” that they blame on low interest rates in the United States and other advanced economies.
“Giving due regard to country-specific circumstances and the benefits of financial integration, such an approach should encompass