IMF endorses capital limits

 
Tim Wallace
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THE INTERNATIONAL Monetary Fund yesterday said capital controls should be used in some circumstances to promote financial stability, overturning a long-held policy that government intervention is damaging for investors.

Emerging markets have complained that rich world investors have flooded their economies, driving up asset prices and leading to some overheating. But the IMF warned the controls must not be used as an excuse to postpone vital economic reforms.