Free Movement of Capital and Payments
Full freedom of movement for capital and payments has so far only been approached between individual pairings of states which have free trade agreements and relative freedom from capital controls, such as Canada and the U.S., or the complete freedom within regions such as the European Union, with its "Four Freedoms" and the Eurozone. During the first age of globalization that was brought to an end by World War I, there were very few restrictions on the movement of capital, but all major economies except for Great Britain and the Netherlands heavily restricted payments for goods by the use of current account controls such as tariffs and duties.
Read more about this topic: Capital Control
... Pro capital control economists have made the following points ... Capital controls may represent an optimal Macroprudential policy that reduces the risk of financial crises and prevents the associated externalities Global economic growth was on average ... Dani Rodrik have found no positive correlation between growth and free capital movement ...
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