The Vice-Grip of Finance C.P. Chandrasekhar and Jayati Ghosh

The stock market in Thailand collapsed after the government introduced limited market-based capital controls aimed at stalling the rapid appreciation of the Thai baht. The subsequent retreat by the government on the capital control measures raises serious questions about policy sovereignty in developing countries that have opened their financial markets to portfolio capital flows.

Vice_Grip_Finance (Download the full text in PDF format)