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Sudeep Reddy The Wall Street Journal WASHINGTON
emerging Representatives rejected a plan by the International Monetary Fund that would guide them in their efforts to control huge inflows of capital entering their economies by considering it a way to restrict their actions rather than a help.
During its spring meeting held over the weekend, the Committee Coordination of policies of the IMF responded by delaying the plan, which seeks to influence the use of capital control tools to restrict capital inflows as taxes and restrictions on foreign investment. The committee agreed to study the issue in the coming months.
The IMF proposal formalized controls support a change in the long-standing opposition of the fund to limit the free flow of capital around the world. IMF officials had to recognize the need to restrict the emerging markets of rising capital inflows, which can lead to asset bubbles and inflation and hurt exporters locales al aumentar el valor de sus monedas.
El plan del FMI habría alentado a las naciones a tratar los controles de capital como un último recurso, después que hubieran primero intentado el uso de otras herramientas, como políticas de tasas de interés, el valor de la moneda y los presupuestos gubernamentales.
Pero los ministros de las economías en desarrollo resistieron vehementemente el plan al considerar la propuesta como un intento de las economías avanzadas restringir sus políticas. Brasil, Turquía, Corea del Sur y varios otros países en desarrollo han adoptado controles sobre los capitales en el último año para limitar los crecientes ingresos de dinero.
"We oppose any policy, regulatory framework or 'code of conduct' who attempts to restrict, directly or indirectly, the policy responses of countries facing growing increases in volatile capital flows," said Brazilian Finance Minister Guido Mantega, the meeting of the Coordination Committee of the IMF.
The fight over capital controls comes amid an ongoing battle to find a culprit in the flood of capital flows from developed economies with slow growth to developing countries for further growth.
blame developing countries, in particular the Federal Reserve States as a source of excess capital because it is keeping interest rates near zero and pumping money into the economy through the purchase of government bonds. Developed countries to China mainly responsible for the problem, due to its policy of strict control of the value of its currency, and also the tendency of investment capital flowing into the economies with the fastest growth.
The IMF board ordered the fund to study the subject with a greater focus on the sources of capital flows.
Mantega described the capital controls as measures of "self defense." "Ironically, some of the countries who are responsible for the deepest crisis since the Great Depression, and still have to solve their own problems, are eager to prescribe codes of conduct to the world, including countries that are overloaded due to the unintended consequences of policies adopted by them, "he said in a statement to the policy committee.
Treasury Secretary U.S., Tim Geithner, the IMF called the proposal" a good start. "blamed the exchange rate policy in countries such as China, indicating that drive capital into economies with free exchange rates.
"A few emerging markets have schemes strictly managed exchange rate, makes extensive use of capital controls and accumulate excess reserves well above precautionary levels, "he said." This asymmetry magnificent capital flows to emerging markets with open capital accounts, raising the pressure upward pressure on exchange rates that are flexible and encourage inflation in economies with fixed exchange rates and undervalued. "
IMF for decades opposed to capital controls. The nations that use it risked being criticized by the fund, sparking a backlash from some members who feared being stigmatized by investors or other nations.
But IMF position has changed in recent years amid the huge volume of "hot money" or short-term flows, which enter in many economies.
"Those who think that capital controls can be useful should be happy," said IMF Managing Director Dominique Strauss-Kahn told reporters before the meeting. "But, you know, human mechanics is sometimes a little difficult to understand."
The IMF's framework for the use of capital controls, if adopted, may have little power outside the countries receiving IMF loans.
However, some nations are concerned that they may be judged negatively in the evaluation of the fund member economies if it follows these guidelines.
supporters say the IMF plan is designed primarily to provide basic matches on the use of capital controls. "Never gonna be a series of strict regulations with sanctions," said Angel Gurria, head of the Organization for Economic Cooperation and Development, which represents the United States and other advanced economies. "This is not to prevent countries that do what they think they need to do. It's about creating a comfort zone."
-Ian Talley, Matthew Cowley and Bob Davis contributed to this report.
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