Back in 2009, I wondered whether Brazil's adoption of capital controls was a portent of a shift in international attitudes towards regulating capital movements. Later posts by Stephen Grenville tracked the way in which the IMF was changing its own views. That rethink has continued; the latest paper setting out the Fund's view is here. The IMF is now adopting the institutional position that controls have a potentially useful role to play in managing volatile capital movements. Another sign that the times, they are a changin'.

Steve Grenville covered the problems of volatile capital flows at greater length in a recent article in the ANU's policy-focused journal Agenda. He noted that the IMF had shifted a long way but still had a fair distance to go before they had operational answers.

Photo by Flickr user .Martin