The Unassuming Economist

IMF Managing Director Christine Lagarde quoted my research with Davide Furceri during her speech: “IMF analysis shows that having a more inclusive financial system makes it safer—and more beneficial—to relax restrictions on capital flows across borders . By liberalizing their capital account over time, countries can attract more foreign investment, increase the liquidity of local financial markets, and reduce their cost of capital. In other words, by developing deep, well-regulated financial markets, countries can better mobilize domestic and international resources for investment—while reducing the financial stability risks that come with large capital inflows.”

Continue reading the speech and our paper.