Measuring Capital Account Openness and Evidence on Targeted Equity-vs-Debt Liberalization

Source: International Monetary Fund – IMF (video statements)

We introduce the FinOpen index, a new non-binary measure of capital account openness. Our results show that opening first to equity—rather than debt—leads to more stable external financing, especially in countries with stronger institutions.

Speakers
Tobias Krahnke, Strategy, Policy and Review Department, IMF
Wenjie Li, Institute for Capacity Development, IMF

https://www.youtube.com/watch?v=cNuhB9iThls