Increases in the currency prices of these countries were associated with increases in their capital account
In any emerging economy, there is an important connection between the health of the capital account
and that of the domestic economy.
1.704-l(b)(2)(ii)(b) sets forth three requirements that must be present in a partnership agreement for an allocation to meet the economic effect test: (1) The partnership must maintain capital accounts
in accordance with the rules set forth in Regs.
Theoretical literature suggests that the capital account
liberalization encourages an efficient allocation of financial resources, induces financial sector development and provides risk diversification opportunities.
"The most significant credit implication of this policy shift is that it constitutes progress along the path towards capital account
liberalization," said Moody's.
This paper aims to understand the historical trajectory and the current shape of South Korea's political economy in general, and of one particular economic policy area: capital account
Additionally, partners can have negative tax capital accounts
as a result of receiving depreciation deductions and cash distributions over the years.
Popular discussions about the prospects of China's currency, the renminbi, range from the view that it is on the threshold of becoming the dominant global reserve currency to the concern that rapid capital account
opening poses serious risks for China.
Behera seeks to provide a comprehensive assessment of capital account
liberalisation measures undertaken by India, by examining some aspects of its impact on investment, growth and macroeconomic volatility.
Oliver, Subramanian, and Williamson (all senior fellows at the Peterson Institute for International Economics) discuss the pros and cons of capital account
liberalization for emerging financial markets.
The experimental zone of Qianhai - dubbed a $45 billion "mini Hong Kong" - will be a pioneer of the gradual opening up of China's capital account
Zhou Xiaochuan said in an interview with Chinese magazine Caixin that China did not fare badly on an International Monetary Fund measure of currencies' convertibility under the capital account
. But he stopped short of calling for a fully convertible currency.
But despite Beijing's keenness to internationalise the RMB, efforts to make the RMB convertible on the capital account
will not be progressing at a fast pace.
In order to carry out the research, the paper takes an outside-in perspective by analysing the Mexican case through the lenses of the International Monetary Fund (IMF) and its policy advice on capital account
liberalization and its domestic pre-requisites.
India should move toward capital account
convertibility on a calibrated basis according to domestic and global factors, the governor of the Reserve Bank of India (RBI) Duvvuri Subbarao said on Friday.