Article: Much talk, little effect from U.N. emerging market report.(Lehman Brothers Holdings Inc.)

Byline: Beatrix Payne

A United Nations report urging emerging markets to adopt capital controls to avoid having institutional flows whipsaw their currencies will buttress the arguments of a handful of countries that use controls, but is not likely to have a huge impact.

Rather, the International Monetary Fund is likely to be the dominant force in any debate on capital controls, particularly among those countries adopting IMF support programs, said Alistair Newton, senior political analyst at Lehman Brothers, London.

The IMF encourages emerging markets to drop capital controls as these countries improve financial regulation and open up to global ...

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