Monday, February 18, 2008

The 'freedom to restrictions'

Books of Account

Capital Rules

Rawi Abdelal

( )

The new orthodoxy

The rise of global financial markets towards the end of the last century was based on one idea, writes Rawi Abdelal in Capital Rules ( ). The idea, or what he calls ‘the new orthodoxy’, was freedom for capital movements between countries with minimal restriction and regulation.

“It was not always thus,” reminisces the author. “Transactions routinely executed by bankers, managers, and investors during the 1990s — trading foreign stocks and bonds, borrowing in foreign currencies, for example — had been illegal in many countries only decades, and sometimes just a year or two, earlier.”


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