Iceland's capital account
surplus increased from 1 % of its GDP in 2003 to a peak of 18% in 2008 (Central Bank of Iceland 2018; Statistics Iceland 2018).
The joint venture's operating agreement did not specify how losses would be allocated and did not meet any of the requirements under the economic effect test because the operating agreement did not (1) require the joint venture to maintain capital accounts
; (2) distribute liquidation proceeds in accordance with positive capital accounts
; or (3) contain a deficit restoration obligation.
However, a policy prescription of rapid capital account
liberalization in economically less developed countries has been controversial.
In order to answer these questions, I have divided this paper into two main sections: first, a short overview of the historical trajectory of capital account
policy in South Korea from the 1960s to the present day, and second, an attempt to explain the current shape of capital account
policy with an explanatory variable that I have developed in the context of Latin America's political economy: national economic identity (Leiteritz 2012).
Finally, once operations commence, OP partner income allocations are complicated by the historical tax carry over basis of contributed property and partner capital accounts
compared to newly revalued book capital accounts
Even though the economy has neither a flexible exchange rate nor an open capital account
, the Chinese government has recently taken a number of steps to increase the international use of the renminbi.
The biggest challenge for authorities will be to prevent companies from exploiting the zone, from inside or outside the area, because of the easier terms on capital account
transactions, said economist Zhao Qingming.
While the currency is already convertible under China's current account, the broadest measure of trade in goods and services, the capital account
, which measures inflows and outflows of different types of capital, is still closely managed by Beijing as it worries about capital flight and hot money inflows.
Thomas Harr, head of Asian FX strategy research at Standard Chartered, says, "China has a clear interest in internationalising the RMB, and that can move relatively fast, but having full convertibility of the RMB is a very different thing and clearly it does seem that the RMB, will continue to be internationalised for trade settlement without having convertibility on the capital account
. Convertibility of the RMB on the capital account
will be gradual and you won't have full capital convertibility for a very long time.
In other words, the cross-time comparison of the IMF's analysis of the Mexican case before and after the crisis shows that the Fund interpreted Mexican economic performance in a way that supported the view according to which the liberalization of the capital account
is a crucial policy to promote domestic economic growth.
The Indian rupee is fully convertible on the current account, but only partially convertible on the capital account
The improvement concept may apply, separately, both to the current account and the capital account
. According to economic literature, a reversal in the current account occurs if, at the same time, the change in the balance is large relative to nominal gross domestic product (GDP) and lasts for more than one year (Milesi-Ferretti and Razin, 2000).