Capital Ideas:
The IMF and the Rise of Financial Liberalization
Jeffrey M. Chwieroth

Paper | February 2010 | $29.95 / £20.95
Cloth | February 2010 | $75.00 / £52.00
352 pp. | 6 x 9 | 1 line illus. 6 tables.

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Chapter 1 [PDF]

The right of governments to employ capital controls has always been the official orthodoxy of the International Monetary Fund, and the organization's formal rules providing this right have not changed significantly since the IMF was founded in 1945. But informally, among the staff inside the IMF, these controls became heresy in the 1980s and 1990s, prompting critics to accuse the IMF of indiscriminately encouraging the liberalization of controls and precipitating a wave of financial crises in emerging markets in the late 1990s. In Capital Ideas, Jeffrey Chwieroth explores the inner workings of the IMF to understand how its staff's thinking about capital controls changed so radically. In doing so, he also provides an important case study of how international organizations work and evolve.

Drawing on original survey and archival research, extensive interviews, and scholarship from economics, politics, and sociology, Chwieroth traces the evolution of the IMF's approach to capital controls from the 1940s through spring 2009 and the first stages of the subprime credit crisis. He shows that IMF staff vigorously debated the legitimacy of capital controls and that these internal debates eventually changed the organization's behavior--despite the lack of major rule changes. He also shows that the IMF exercised a significant amount of autonomy despite the influence of member states. Normative and behavioral changes in international organizations, Chwieroth concludes, are driven not just by new rules but also by the evolving makeup, beliefs, debates, and strategic agency of their staffs.

Jeffrey M. Chwieroth is senior lecturer in the Department of International Relations at the London School of Economics and Political Science.

Endorsements:

"Chwieroth gives us an in-depth and fair account of what the staff of the International Monetary Fund came to believe about freedom of capital flows and, more importantly, why the IMF holds those beliefs and how its views have evolved over the past six decades. Capital Ideas will be a valuable source for researchers studying one of the key economic policy issues of our time."--James M. Boughton, author of Silent Revolution: The International Monetary Fund, 1979-1989

"This is a fascinating and important book that every student of the International Monetary Fund should read and absorb. Chwieroth buttresses his argument with impressive interview and archival research and poses a serious challenge to previous scholarship about the liberalization of global finance."--Randall Stone, University of Rochester

"What works so well about Capital Ideas is Jeffrey Chwieroth's commitment to understanding historical change and to the very challenging task of getting inside the 'black box' that is the International Monetary Fund. Chwieroth convincingly knocks down some cherished assumptions about international financial institutions and international organizations more broadly. This is a most interesting book and it is likely to be widely read and become a standard work in the field."--Timothy J. Sinclair, University of Warwick

Table of Contents:

List of Figures and Tables ix
Preface xi
List of Abbreviations xvii
CHAPTER ONE: Introduction 1
CHAPTER TWO: Normative Change from Within 23
CHAPTER THREE: Capital Ideas and Capital Controls 61
CHAPTER FOUR: Capital Controlled: The Early Postwar Era 105
CHAPTER FIVE: The Limits and Hollowness of Keynesianism in the 1960s 121
CHAPTER SIX: Formal Change and Informal Continuity: The Reform Negotiations of the 1970s 138
CHAPTER SEVEN: Capital Freed: Informal Change from the 1980s to the Mid-1990s 147
CHAPTER EIGHT: Capital in Crisis: Financial Turmoil in the Late 1990s 187
CHAPTER NINE: Norm Continuity and Organizational Legitimacy from the Asian Crisis to the Subprime Crisis 226
EPILOGUE: A Subprime "Crisis" for Capital Freedom? 255
Index 301

Subject Areas:

• Political Science and International Relations
• Economics

Shopping Cart:

For customers in the U.S., Canada, Latin America, Asia, and Australia
Paper: $29.95 ISBN13: 978-0-691-14232-6
Cloth: $75.00 ISBN13: 978-0-691-14231-9

For customers in Europe, Africa, the Middle East, and India
Paper: £20.95 ISBN13: 978-0-691-14232-6
Cloth: £52.00 ISBN13: 978-0-691-14231-9

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File created: 11/4/2009

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