Investor Protection vs Host State Regulatory Autonomy during Economic Crisis: Treatment of Capital Transfers and Restrictions under Modern Investment Treaties

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2007
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There is a debate amongst econotnists over whether foreign exchange restrictions- as a form of capital controll-drive away foreign investors, or whether they can be used to stem the damaging effects of the flow of `hot money'; why do countries impose capital restrictions and whether such restrictions are the best available options to countries facing economic crises.2 For international investment lawyers, the main questions are: to what extent is a host state under legal duty to comply with the capital repatriation obligations of an investment treaty in the face of economic or financial crisis or threat thereof?
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