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Macroeconomic Theory and Policy “Should Capital Controls Be Used?”  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 using 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. Make sure that you clearly understand what an academic work is.

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