The last quarter of the 20th century was characterized by the liberalization and globalization of the
financial sector. It was widely believed that financial deregulation would allow for a more efficient
allocation of resources, thus contributing to the acceleration of the process of economic growth.
The liberalization of the capital account was also perceived as enhancing growth by allowing the
more efficient allocation of international financial resources. This consensus, however, was put
into question as a result of the 2007-08 financial crisis. While a new consensus is yet to arise, a
vibrant debate is currently taking place about the pros and cons of re-regulating the capital
account.
Write a short academic paper on the rationale and wisdom of introducing capital controls
(i.e., of reducing the degree of capital mobility). You may select a case study or studies to
focus your essay. Your essay must have a clear thesis and include a brief introduction and
conclusion. Your paper must be about 1500 words in length (5-6 double-space pages, without
counting the references) and make reference to at least five academic works published on the
topic.