... whether the less developed countries (LDC) should or should not adopt measures to regulate the capital inflow and outflow in their economies. In face of the fact that Brazilian president, Mr. Cardoso, echoing the claim of many economists, has more than once expressed worries about the problems that the free capital movements could cause to the global economy, it seems not an unreal supposition that Brazil could once adopt measures in this direction. The purpose of this paper is to analyze how Brazil would get affected by the imposition of capital controls, trying to balance the aspects that could help the country to rearrange internal and/or external imbalances, and the negative outcomes that should emerge from "insulation", or from an action that can be seen as "breaking the rules" of the capital markets. The structure of this study starts with a brief overview of the problems that capital mobility can cause to ...

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