Global Capital Mobility

Abstract

International capital movements were subject to tight national controls in many states during the post-World War II era until the early 1970s, and in some countries until much later. Today, however, capital movements between many countries are largely free from policy restrictions. The contemporary global political economy is characterized by large capital flows between particular subsets of countries. Most capital flows travel between developed economies and emerging market economies, rather than less-developed economies. The expansion of cross-border capital mobility has been facilitated by a series of national, regional and global changes in rules, principles and policy practices during the last three decades.