Managing the Capital Account and Regulating the Financial Sector: A developing country perspective

IPD in partnership with UN DESA, IPEA and FEPS hosted a one and a half day private conference on Managing the Capital Account and Regulating the Financial Sector on August 23-24 in Rio de Janiero at the Brazilian Development Bank (BNDES).  The conference focused on the important subject of financial markets reform with special attention to prudential management of the capital account, developing country domestic regulatory regime strategies and the state of international regulation since the financial crisis.  IPD believes that Introducing counter-cyclical and macro-prudential elements are crucial and the need for more discussion on how to best implement them was the impetus for this meeting.  Particular attention was also paid to the issue of whether capital accounts regulation should be an integral part of the policy toolkit or a last resort to turn to when all other policy tools have been exhausted, as recommended in a recent report by the IMF.