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Economists Issue Statement on
Capital Controls and Trade Treaties
Full Statement | Press Coverage | Spanish Version

Initiated by the Global Development and Environment Institute, Tufts University (GDAE) and the Washington, DC-based Institute for Policy Studies (IPS), this economist statement calls for the United States to recognize that capital controls are legitimate prudential financial regulations that should not be subject to investor claims under U.S. trade and investment treaties.

Following a number of official and academic findings that show capital controls are legitimate tools to prevent and mitigate financial crises, an increasing number of governments around the world are using capital controls and other macro-prudential measures in responsible ways to deal with heightened international financial instability.  Meanwhile, the Obama administration is seeking approval of a trade pact with South Korea and is in the final phase of a review of the U.S. “model” bilateral investment treaty, which they say will be the basis for new deals with India, China, and several other countries.  The United States is also negotiating the “Trans-Pacific Partnership Agreement,” which is intended to be a trade agreement “for the 21st century.”

These initiatives offer a real opportunity to apply lessons from recent financial crises and make U.S. trade policy more consistent with economic theory and practice.

Download the Letter in PDF Format

Prominent Business Groups Push Back Against Recent Economist Letter
In a direct response to the letter submitted on January 31, 2011, the U.S. Chamber of Commerce, American Petroleum Institute and 15 other prominent business groups sent a letter to the Obama Administration on Monday, February 7, 2011.  In the response letter, the groups defend capital controls in trade pacts and advocate for maintaining the status quo. Read a Point-By Point Response to the Lobby Group Rebuttal

Response by US Treasury Secretary Timothy Geithner
On April 12, 2011 US Treasury Secretary Timothy Geithner responded to the Economists' letter, thanking the signatories for bringing this issue to his attention and stating that he does not intend to change the capital control restrictions in U.S. trade and investment treaties.

Read more on GDAE's work on Capital Controls and Trade Treaties
Learn more about IPS's work on Capital Controls

Read other Press Coverage of the Initiative

Full Statement

Secretary Hillary Rodham Clinton                                                   January 31, 2011
U.S. Department of State
2201 C Street NW
Washington, D.C. 20520

Secretary Timothy Geithner
Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, D.C. 20220

Ambassador Ron Kirk
Office of the United States Trade Representative
600 17th Street NW
Washington, DC 20508

Dear Secretary Clinton, Secretary Geithner, and Ambassador Kirk:

We, the undersigned economists, write to alert you to important new developments in the economics literature pertaining to prudential financial regulations, and to express particular concern regarding the extent to which capital controls are restricted in U.S. trade and investment treaties.

Authoritative research recently published by the National Bureau of Economic Research, the International Monetary Fund, and elsewhere has found that limits on the inflow of short-term capital into developing nations can stem the development of dangerous asset bubbles and currency appreciations and generally grant nations more autonomy in monetary policy-making.i

Given the severity of the global financial crisis and its aftermath, nations will need all the possible tools at their disposal to prevent and mitigate financial crises.  While capital account regulations are no panacea, this new research points to an emerging consensus that capital management techniques should be included among the “carefully designed macro-prudential measures” supported by G-20 leaders at the Seoul Summit.ii  Indeed, in recent months, a number of countries, from Thailand to Brazil, have responded to surging hot money flows by adopting various forms of capital regulations.

We also write to express our concern that many U.S. free trade agreements and bilateral investment treaties contain provisions that strictly limit the ability of our trading partners to deploy capital controls. The “capital transfers” provisions of such agreements require governments to permit all transfers relating to a covered investment to be made “freely and without delay into and out of its territory.”

Under these agreements, private foreign investors have the power to effectively sue governments in international tribunals over alleged violations of these provisions. A few recent U.S. trade agreements put some limits on the amount of damages foreign investors may receive as compensation for certain capital control measures and require an extended “cooling off” period before investors may file their claims.iii However, these minor reforms do not go far enough to ensure that governments have the authority to use such legitimate policy tools. The trade and investment agreements of other major capital-exporting nations allow for more flexibility.

We recommend that future U.S. FTAs and BITs permit governments to deploy capital controls without being subject to investor claims, as part of a broader menu of policy options to prevent and mitigate financial crises.


Initial Signatories:

  1. Ricardo Hausmann, Director, Harvard University Center for International Development
  2. Dani Rodrik, Rafiq Hariri Professor of International Political Economy, John F. Kennedy School of Government, Harvard University
  3. Joseph Stiglitz, University Professor, Columbia University, Nobel laureate
  4. Arvind Subramanian, Senior Fellow, Peterson Institute for International Economics, and Senior Fellow, Center for Global Development
  5. Nancy Birdsall, President, Center for Global Development, Washington, DC
  6. Olivier Jeanne, Professor of Economics, Johns Hopkins University, and Senior Fellow, Peterson Institute for International Economics
  7. Pranab Bardhan, Professor of Economics, University of California, Berkeley
  8. Lance Taylor, Department of Economics, New School for Social Research
  9. Jose Antonio Ocampo, School of International and Public Affairs, Columbia University
  10. Stephany Griffith-Jones, Initiative for Policy Dialogue, Columbia University
  11. Ethan Kaplan, IIES, Stockholm University and Columbia University
  12. Dimitri B. Papadimitriou, President, The Levy Economics Institute of Bard College
  13. Ilene Grabel, Josef Korbel School of International Studies, University of Denver
  14. Alice Amsden, Department of Urban Studies and Planning, MIT
  15. Gerald Epstein, Department of Economics, University of Massachusetts-Amherst
  16. Kevin P. Gallagher, Department of International Relations, Boston University
  17. Sarah Anderson, Global Economy Project Director, Institute for Policy Studies
  18. Arindrajit Dube, Department of Economics, University of Massachusetts-Amherst
  19. William Miles, Department of Economics, Wichita State University
  20. Adam Hersh, Center for American Progress
  21. James K. Galbraith, Lloyd M. Bentsen Jr. Chair in Government/Business Relations and Professor of Government, University of Texas at Austin
  22. Paul Blustein, Nonresident Fellow, the Brookings Institution, and Senior Visiting Fellow, Centre for International Governance Innovation
  23. Anton Korinek, Department of Economics, University of Maryland

Other US-Based

  1. Rania Antonopoulos, Director, Gender Equality and the Economy Program, Levy Economics Institute
  2. Eileen Appelbaum, Center for Economic and Policy Research
  3. Leslie Elliott Armijo, Visiting Scholar, Mark O. Hatfield School of Government, Portland State University
  4. Ron Baiman, Center for Tax and Budget Accountability
  5. Dean Baker, Co-director, Center for Economic and Policy Research
  6. Radhika Balakrishnan, Executive Director, Center for Women's Global Leadership and Professor at Women's and Gender Studies Rutgers, The State University of New Jersey
  7. Nesecan Balkan, Senior Lecturer, Department of Economics Hamilton College
  8. Erol Balkan, Department of Economics, Hamilton College
  9. Lourdes Beneria, Professor, Cornell University
  10. Roger R. Betancourt, Professor of Economics, Emeritus, Department of Economics, University of Maryland
  11. Ravi Bhandari, Senior Fulbright Scholar, Department of Economics, Saint Mary's College of California
  12. Cyrus Bina, Distinguished Research Professor of Economics, University of Minnesota
  13. William K. Black, University of Missouri-Kansas City
  14. Ron Blackwell, Chief Economist, AFL-CIO
  15. Robert A. Blecker, Professor and Chair, Department of Economics, American University
  16. Howard Botwinick, Associate Professor of Economics, SUNY Cortland
  17. James K. Boyce, Director Professor of Economics, University of Massachusetts
  18. Aldo Caliari, Director, Rethinking Bretton Woods Project, Center of Concern
  19. John Cavanagh, Director, Institute for Policy Studies
  20. Aydin Cecen, Professor of Economics and Director, Center for International Trade & Economic Research, Central Michigan University
  21. Paul P. Christensen, Associate Professor of Economics, Hofstra University
  22. Jens Christiansen, Professor of Economics, Mount Holyoke College
  23. Steve Cohn, Professor of Economics, Knox College
  24. Jane D'Arista, Research Associate, Political Economy Research Institute
  25. Paul Davidson, Editor, Journal of Post Keynesian Economics
  26. George DeMartino, Professor and Co-Diretor Program in GFTEI, Josef Korbel School of International Studies, University of Denver
  27. James M. DeVault, Associate Professor of Economics, Lafayette College
  28. Robert Devlin, Director, Organization of American States (OAS)
  29. Rick Doner, Professor, Department of Political Science, Emory University
  30. Marie Christine Duggan, Associate Professor of Economics, Keene State College
  31. Amitava Krishna Dutt, Professor of Economics and Political Science, University of Notre Dame
  32. Todd Easton, Associate Professor, Pamplin School of Business, University of Portland
  33. Catherine S. Elliott, Professor of Economics, New College of Florida
  34. Kimberly Elliott, Senior Fellow, Center for Global Development
  35. Maria S. Floro, Economics Department, American University
  36. Mwangi wa Githinji, Economics Department, University of Massachusetts-Amherst
  37. David Gold, Associate Professor, International Affairs Program, The New School
  38. Neva R. Goodwin, Co-director, Global Development And Environment Institute, Tufts University
  39. John M. Gowdy, Rittenhouse Professor of Humanities and Social Science, Department of Economics, Rensselaer Polytechnic Institute
  40. Howard Handelman, Emeritus Professor of Political Science, University of Wisconsin-Milwaukee
  41. Heidi Hartmann, President, Institute for Women’s Policy Research
  42. Soren Hauge, Associate Professor, Economics Department, Ripon College
  43. Ann Helwege, Department of International Relations, Boston University
  44. Barry Herman, Graduate Program in International Affairs, The New School
  45. Ellen Houston, Department of International Studies and Economics, Marymount Manhattan College
  46. Amy Ickowitz, Assistant Professor, Clark University
  47. Janis K. Kapler, Associate Professor and Chair, Economics Department, University of Massachusetts
  48. Shahrukh Rafi Khan, Copeland Fellow, Amherst College
  49. Haider A. Khan, Professor of Economics, Josef Korbel School of International Studies, University of Denver
  50. Tarron Khemraj, Assistant Professor of Economics, New College of Florida
  51. Robin A. King, Non-Resident Associate, School of Foreign Service, Georgetown University
  52. Timothy Koechlin, Director, International Studies Program, Vassar College
  53. Jan Kregel, Senior Scholar and Program Director, Levy Economics Institute of Bard College
  54. William Van Lear, Professor of Economics, Belmont Abbey College
  55. Fernando Leiva, Associate Professor, Department of Latin American, Caribbean and US Latino Studies, University at Albany (SUNY)
  56. Charles Levenstein, Professor Emeritus, University of Massachusetts
  57. Catherine Lynde, University of Massachusetts
  58. Arthur MacEwan, Professor Emeritus, Department of Economics, Senior Fellow, Center for Social Policy, University of Massachusetts
  59. Jeff Madrick, Editor, Challenge Magazine
  60. Markos J. Mamalakis, Professor of Economics Emeritus, University of Wisconsin-Milwaukee
  61. David R. Mares, Institute of the Americas Chair for Inter-American Affairs and Director, Center for Iberian and Latin American Studies, University of California
  62. Thomas Masterson, Research Scholar, Levy Economics Institute of Bard College
  63. Julie Matthaei, Professor of Economics, Wellesley College
  64. Kathleen McAfee, Associate Professor, Global Political Economy, Department of International Relations, San Francisco State University
  65. Elaine McCrate, Economics and Women's Studies, University of Vermont
  66. Martin Melkonian, Adjunct Associate Professor, Department of Economics, Hofstra University
  67. Marcelo Milan, Assistant Professor of Economics, University of Wisconsin-Parkside
  68. John A. Miller, Professor of Economics, Wheaton College
  69. Daniel R. Miller, Department of History, Calvin College
  70. Philip Moss, Professor of Economics, University of Massachusetts
  71. Tracy Mott, Associate Professor and Department Chair, Department of Economics, University of Denver
  72. Julie A. Nelson, Professor, Department of Economics University of Massachusetts
  73. Richard B. Norgaard, Energy and Resources Group, University of California
  74. Thomas Palley, Associate, Economic Growth Program, New America Foundation
  75. Richard Parker, John F Kennedy School of Government, Harvard University
  76. Eva Paus, Professor, Department of Economics, Mt. Holyoke College
  77. Karl Petrick, Assistant Professor of Economics, Western New England College
  78. Robert Pollin, Department of Economics, University of Massachusetts
  79. Thomas M. Power, Professor, Economics Department, University of Montana
  80. Martin Rapetti, University of Massachusetts
  81. Miriam Rehm, New School
  82. Michael Reich, Professor of Economics, University of California
  83. Joseph Ricciardi, Associate Professor of Economics, Babson College
  84. Charles P. Rock, Professor of Economics, Rollins College
  85. Jaime Ros, Professor of Economics, Kellogg Institute for International Studies, University of Notre Dame
  86. Helen Scharber, Department of Economics, University of Massachusetts
  87. Ted P. Schmidt, Associate Professor of Economics and Finance, SUNY Buffalo State
  88. John Schmitt, Senior Economist, Center for Economic and Policy Research
  89. Ben Schneider, Professor, Department of Political Science, MIT
  90. Juliet Schor, Department of Sociology, Boston College
  91. Stephanie Seguino, Professor of Economics, University of Vermont
  92. Eric Selbin, Professor of Political Science and University Scholar, Southwestern University
  93. Nina Shapiro, Professor of Economics, Saint Peter's College
  94. John Sheahan, Professor of Economics, Emeritus, Williams College
  95. Barry Shelley, Professor, Graduate Programs in Sustainable International Development, Heller School for Social Policy and Management, Brandeis University
  96. Maria Luiza Falcão Silva, Heriot Watt University, Edinburgh; MSc University of Wisconsin
  97. Peter Skott, Department of Economics, University of Massachusetts
  98. Bryan Snyder, Department of Economics, Bentley University
  99. Rose J. Spalding, Professor, Political Science, DePaul University
  100. James Ronald Stanfield, Emeritus Professor of Economics, Colorado State University
  101. Howard Stein, Adjunct Professor, Center for Afroamerican and African Studies, Department of Epidemiology, University of Michigan
  102. Strom Thacker, Associate Dean of the Faculty, College of Arts and Sciences, Boston University
  103. Chris Tilly, Professor of Urban Planning and Director, Institute for Research on Labor and Employment, UCLA
  104. Steven Topik, Department of History, University of California
  105. Mayo C. Toruño, Professor and Chair of Economics Department, California State University
  106. Eric Verhoogen, Associate Professor, Department of Economics and School of International and Public Affairs, Columbia University
  107. Matías Vernengo, Associate Professor, University of Utah
  108. Tonia Warnecke, Professor, Department of Economics, Rollins College
  109. Mark Weisbrot, Co-Director, Center for Economic and Policy Research
  110. Thomas E. Weisskopf, Professor Emeritus of Economics, University of Michigan
  111. Jonathan B. Wight, Professor of Economics and International Studies, Robins School of Business, University of Richmond
  112. Timothy A. Wise, Director of Research and Policy Program, Global Development and Environment Institute (GDAE), Tufts University
  113. Marty Wolfson, University of Notre Dame
  114. Mickey Wu, Professor, Department of Economics, Coe College
  115. David Zalewski, Professor of Finance, Providence College
  116. Silverio Zebral, Chief-Economist, Organization of American States (OAS)


  1. Absar Alam, Economist, RITES ltd. India, India
  2. Derbal Abdelkader, Professor in Economics, Oran University, Algeria
  3. Francisco Aguayo, Program Researcher, El Colegio de Mexico, Mexico
  4. Gieeta Ahuja, Assistant Professor, Department of Economics, PGDAV(E) College, University of Delhi, India
  5. Haroon Akram-Lodhi, Chair of the Department of International Development Studies, Trent University, Peterborough, Canada
  6. Fayq Al Akayleh, Quantitative Business Department Head, Al Yamamah University, Saudi Arabia
  7. Philip Arestis, Director of Research, Cambridge Centre for Economic & Public Policy (CCEPP) and Senior Research Fellow, Wolfson College, Cambridge, UK
  8. Mohamed Aslam, Faculty of Economics and Administration, Department of Economics, University of Malaya, Kuala Lumpur, Malaysia
  9. Emilios Avgouleas, Professor of International Financial Markets & Financial Law and Director of the LLM Programme, The School of Law, The University of Manchester, UK
  10. Arindam Banerjee, Consultant, Research and Information System in Developing Countries, New Delhi, India
  11. Juan José Barrios, Professor, Department of Economics, Universidad ORT, Uruguay
  12. Edsel L. Beja Jr., Department of Economics, Ateneo de Manila University, Philippines
  13. Janine Berg, Senior Economist, International Labour Office
  14. Peter A.G. van Bergeijk, Professor of International Economics and Macro Economics, International Institute of Social Studies of Erasmus University (ISS), Netherlands
  15. Sheila Bhalla, Visiting Professor, Institute for Human Development, New Delhi, India
  16. Mustapha Ibn Boamah, Assistant Professor of Economics, Department of Social Science, University of New Brunswick, Saint John, Canada
  17. Patrick Bond, Professor of Development Studies, University of KwaZulu-Natal, Durban, South Africa
  18. Pablo Gabriel Bortz, Ph.D. candidate, Delft University of Technology, Netherlands
  19. Sergio Cesaratto, Professor of Economics, Department of Political Economy, University of Siena, Italy
  20. Ha-Joon Chang, Department of Economics, University of Cambridge, UK
  21. Kyung-Sup Chang, Professor of Sociology, Seoul National University, South Korea
  22. Ping Chen, Professor, National School of Development, Peking University, Beijing, and Senior Fellow at the Center for New Political Economy, Fudan University, Shanghai, China
  23. Suthiphand Chirathivat, Chairman, Chula Global Network, Chulalongkorn University, Bangkok, Thailand
  24. John Christensen, Director and Economic Adviser, Tax Justice Network International Secretariat, London, UK
  25. Alan Cibils, Chair, Political Economy Department, Universidad Nacional de General Sarmiento, Buenos Aires, Argentina
  26. Andrew Cornford, Counsellor, Observatoire de la Finance, Geneva, Switzerland
  27. Christopher Cramer, Professor of the Political Economy of Development, School of Oriental and African Studies (SOAS), London, UK
  28. Ludo Cuyvers, Full Professor, Faculty of Applied Economics, University of Antwerp, Netherlands
  29. James M. Cypher, Doctoral Program in Development Studies, Universidad Autonoma de Zacatecas, Mexico
  30. Anthony P. D'Costa, Professor of Indian Studies and Research Director, Asia Research Centre, Copenhagen Business School, Denmark
  31. Xiao-yuan Dong, Department of Economics, University of Winnipeg, Winnipeg MB, Canada
  32. Javier M. Iguíñiz Echeverría, Profesor Principal Pontificia Universidad Católica del Perú, Universidad Católica del Perú, Perú
  33. Chris Edwards, Senior Fellow, University of East Anglia, UK
  34. Ibrahim El-Issawy, Professor of Economics, Institute of National Planning, Egypt
  35. Ricardo Ffrench-Davis, Professor, Departamento de Economía, Universidad de Chile, Chile
  36. Andrew M. Fischer, Senior Lecturer in Population and Social Policy, Convenor of the Poverty Studies MA specialization, Institute of Social Studies (ISS), part of Erasmus University Rotterdam, The Hague
  37. Smitha Francis, Principal Economist, Economic Research Foundation (ERF), New Delhi, India
  38. Roberto Frenkel, Professor and Principal Research Associate, University of Buenos Aires and CEDES, Argentina
  39. Clara García, Associate Professor of Applied Economics, Complutense University of Madrid, Spain
  40. Marina Della Giusta, Department of Economics, University of Reading, Reading, UK
  41. Jonathan Glennie, Research Fellow, Centre for Aid and Public Expenditure (CAPE), Overseas Development Institute, London, UK
  42. Ummuhan Gokovali, Associate Professor, Economics Department, Mugla University, Turkey
  43. Margarita F. Gomez, Coordinator, Bantay Kita Project, Action for Economic Reforms (Secretariat), Philippines
  44. Ricardo Grinspun, Department of Economics, York University, Canada
  45. Arnold Heertje, Emeritus Professor of Economics, University of Amsterdam, Netherlands
  46. Gerry Helleiner, University of Toronto, Canada
  47. Carlos Heredia, Professor and Director of International Studies, Centro de Investigación y Docencia Económicas A.C., Mexico
  48. Rolph van der Hoeven, Professor of Employment and Development Economics, Institute of Social Studies (ISS), Erasmus University, Netherlands
  49. S A Hamed Hosseini, Assistant Professor, expert in Global Studies and Sociology, University of Newcastle, Australia
  50. Gustavo Indart, Department of Economics, University of Toronto
  51. George Irvin, Professorial Research Fellow in Economics of Development Studies, University of London, SOAS, UK
  52. P.N. (Raja) Junankar, Emeritus Professor, University of Western Sydney, Australia
  53. Rainer Kattel, Professor of Innovation Policy and Technology Governance, Tallinn University of Technology, Estonia
  54. Tadeusz Kowalik, Professor of Economics and Humanities, Institute of Economics, Polish Academy of Sciences, Poland
  55. Sanat Kumar, Relationship Manager (Medium Enterprises), State Bank Of India, India
  56. Kazimierz Laski, Emeritus Professor of Economics, University of Linz, Austria
  57. Hwok-Aun Lee, Faculty of Economics and Administration, University of Malaya, Malaysia
  58. Louis Lefeber, Emeritus Professor of Economics and Graduate Faculty for Social and Political Thought, York University, Toronto, Ontario, Canada
  59. Noemi Levy-Olrik, Economic Faculty, Universidad Nacional Autonoma de Mexico, Mexico
  60. Joseph Anthony Lim, Professor Department of Economics, Ateneo de Manila University, Quezon City, Philippines
  61. Julio G Lopez, Full professor of economics, Universidad Nacional Autonoma de Mexico, Mexico
  62. Rasigan Maharajh, Chief Director, Institute for Economic Research on Innovation, Tshwane University of Technology, South Africa
  63. Pietro P. Masina, Faculty of Political Sciences, University of Naples "L'Orientale", Italy
  64. Terrence McDonough, Professor of Economics, National University of Ireland Galway, Ireland
  65. Oudebji Mohamed, Professor of International Economic Law of Development, Faculty of Law in University of Marrakech, Morocco
  66. Mritiunjoy Mohanty, Professor, Economics Group, Indian Institute of Management Calcutta, India
  67. Sudipto Mundle, Emeritus Professor, National Institute of Public Finance and Policy, New Delhi, India
  68. Richard Murphy, Director, Tax Research LLP, UK
  69. Sreeram Mushty, Freelance Economist, India
  70. Nitya Nanda, Fellow, Centre for Global Agreements, Legislation and Trade (GALT), Resources, Regulation and Global Security Division, Energy and Resources Institute (TERI), India Habitat Centre, India
  71. André Nassif, Professor, Department of Economics, Universidade Federal Fluminense Brazil and The Brazilian Development Bank (BNDES), Brazil
  72. Machiko Nissanke, Professor of Economics, School of Oriental and African Studies, University of London, UK
  73. Lisa L. North, Professor Emeritus, York University, Toronto, Canada
  74. Susumu Ono, Professor Emeritus, Ritsumeikan University, Kyoto, Japan
  75. José F. Pérez Oya, Retired Secretariat UN member, B.A.- M.A- Oxon, Spain
  76. Ignacio Perrotini, Professor, Autonomous National University of Mexico (UNAM), Mexico
  77. Cosimo Perrotta, Università del Salento, Italy
  78. Alberto Arroyo Picard, Professor of International Economics, Universidad Autónoma Metropolitana, Iztapalapa, Mexico
  79. Jan Priewe, University of Applied Sciences, Berlin, Germany
  80. Alicia Puyana, D. Phil. Oxon Professor at Facultad Lainoamericana de Ciencias Sociales, FLACSO-Mexico, Mexico
  81. Kunibert Raffer, Department of Economics, University of Vienna
  82. Arup Rahee, Executive Director, Lokoj Institute, Bangladesh
  83. Indira Rajaraman, Honorary Visiting Professor, Indian Statistical Institute, New Delhi, India
  84. Angelo Reati, Former official of the European Commission,
  85. Y Venugopal Reddy, Emeritus Professor, University of Hyderabad, Former Governor - Reserve Bank of India, India
  86. Massimo Ricottilli, Full Professor, Department of Economics, University of Bologna, Italy
  87. Simon Roberts, Chief Economist, Competition Commission South Africa and visiting scholar, University of Cambridge, UK
  88. Sergio Rossi, Chair of Macroeconomics and Monetary Economics, Department of Economics, University of Fribourg, Switzerland
  89. Carlos A. Rozo, Professor of International Economics, Universidad Autónoma Metropolitana-Xochimilco, Departamento de Producción Económica, Mexico
  90. Gilson Schwartz, Professor, University of São Paulo, Brazil
  91. Paul Segal, Lecturer in Economics, University of Sussex, UK
  92. Gita Sen, Professor, Centre for Public Policy, Indian Institute of Management, India
  93. Dung Pam Sha, Associate Professor, Center for Political Economy and Development Studies, University of Jos, Nigeria
  94. Mehdi Shafaeddin, Institute of Economic Research, University of Neuchatel, Switzerland
  95. Prem Sikka, Professor of Accounting, Centre for Global Accountability, Essex Business School, University of Essex, UK
  96. Kavaljit Singh, Public Interest Research Centre, India
  97. Kannan Srinivasan, Visiting Fellow, Monash Asia Institute Melbourne Victoria, Australia
  98. Irene van Staveren, Professor of Pluralist Development Economics, International institute of Social Studies of Erasmus University (ISS), Netherlands
  99. Frances Stewart, Professor Emeritus of Development Economics, University of Oxford, UK
  100. Eduardo Strachman, Coordinator of Post Graduate Studies in Economics, São Paulo State University, (Unesp), Araraquara, São Paulo, Brazil
  101. Jolanta Supinska, Professor of Social Policy, Institute of Social Policy, Warsaw University, Poland
  102. Insan Tunali, Associate Professor of Economics and Associate Dean, College of Administrative Sciences and Economics, Koc University, Istanbul, Turkey
  103. Oscar Ugarteche, Professor of International Finance, Instituto de Investigaciones Económicas UNAM, Mexico
  104. Bal Krishna Upadhyay, Professor, Tribhuvan University, Nepal
  105. Marc Vandenberghe, Belgian Risk Management Association, Belgium
  106. Alejandro Vanoli, Professor of International Economy, School of Economics, University of Buenos Aires, Chairman of Securities and Exchange Commission of Argentina, Argentina
  107. Roberto Veneziani, Queen Mary University of London, UK
  108. Victor S Venida, Professor, Ateneo de Manila University, Philippines
  109. Alessandro Vercelli, Full professor of Economics, University of Siena, Italy
  110. Robert H. Wade, Professor of Political Economy and Development, London School of Economics, UK
  111. Erin Weir, Senior Economist, International Trade Union Confederation, Belgium
  112. Philip B. Whyman, Professor of Economics, University of Central Lancashire, UK
  113. Raymond E. Wiest, Professor Emeritus of Anthropology, University of Manitoba, Canada
  114. Yu Yongding, Academician, Chinese Academy of Social Sciences President China Society of World Economics, China
  115. Amar Yumnam, Dean/Director/Professor, School of Social Sciences, Manipur University/Center for Manipur Studies, Manipur University/Professor at Department of Economics, Manipur University, India
  116. Stefano Zamagni, Dipartimento di Scienze Economiche, Bologna, Italy
  117. Vera Negri Zamagni, Professor of Economic History, University of Bologna, Italy
  118. Álvaro S. Zerda, Profesor Asociado, Universidad Nacional de Colombia, Colombia

Organizations listed for identification purposes only.

i For some of the most important recent studies see:  Ostry JD, Ghosh AR, Habermeier K, Chamon M, Qureshi MS and Reinhardt DBS (2010). Capital Inflows. The Role of Controls. IMF Staff Position Note, SPN/10/04. Washington, DC, International Monetary Fund.  Magud N and Reinhart CM (2006). Capital Controls: An Evaluation. NBER Working Paper 11973. Cambridge, MA, National Bureau of Economic Research.  Further studies are available upon request.

ii“Seoul Summit Document,” Nov. 12, 2010.

iiiSee, for example,Annex 10-E of the U.S.-Peru FTA.

Press Coverage

The letter’s release received prominent coverage in various media outlets. The story was featured in the Wall Street JournalBloomberg, BNA Trade Daily (subscription only), and it was picked up on Naked Capitalism blog and the NY Times Dealbook blog among others. Kevin Gallagher, one of the letter’s initiators with Sarah Anderson of the Institute for Policy Studies, wrote his monthly column on the topic in the Guardian. Below are other media outlets and blogs that covered the story:

GDAE's Kevin P. Gallagher and Sarah Anderson of the Institute for Policy Studies were interviewed by the Real News Network to explain why capital controls are an important policy tool developing countries can use to prevent financial instability (Jan. 31, 2011).


Congressional Quarterly, features article:  More than 250 Economists Call for Trade Reforms to Allow Capital Controls (Jan. 31, 2011)

Inside U.S. Trade, features article:  More than 250 Economists Call for Trade Reforms to Allow Capital Controls (Jan. 31, 2011)

Dani Rodrik's Weblog features article:  More than 250 Economists Call for Trade Reforms to Allow Capital Controls (Jan. 31, 2011)

Truthout features article: More than 250 Economists Call for Trade Reforms to Allow Capital Controls (Jan. 31, 2011)

SUNS – South-North Development Monitor (subscription only) features article: Leading economists urge US allow use of capital controls (Feb. 2, 2011)

Reuters features article: US business defends capital controls in trade pacts (Feb. 8, 2011)

The Star (Malaysia) features article: Hot debates on capital controls at trade meeting (Feb. 16, 2011)

The Tufts Daily features article: Tufts researchers among over 250 across country to urge trade reform to Obama (Feb. 17, 2011)


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