Emerging Countries Must Be Able To Control Capital Flows: Study

Wochit 0:50 mins

Emerging market nations can be adversely affected by large swings in investment, and must therefore develop tools to control credit flows or risk relinquishing any independent monetary policy. That was the finding of a paper presented at the Kansas City Federal Reserve's monetary policy symposium at Jackson Hole, which highlighted the global impact of the unconventional monetary policy of the United States and other major central banks. JPMorgan Chase & Company, the biggest bank in the United States, will not take on more correspondent relationships with foreign banks in a move to comply with orders from regulators to tighten risk controls, including safeguards against money laundering.

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