Reinhart, Carmen and Smith, R Todd (2002): Temporary controls on capital inflows. Published in: Journal of International Economics , Vol. 57, No. 2 (2002): pp. 327-351.
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During the past decade a number of countries imposed capital controls that had two distinguishing features: they were asymmetric, in that they were designed principally to discourage capital inflows, and they were temporary. This paper studies formally the consequences of these policies, calibrates their potential effectiveness, and assesses their welfare implications in an environment in which the level of capital inflows can be suboptimal. In addition, motivated by the fact that these types of controls have often been left in place after the dissipation of the shock that lead to the controls being implemented, the paper evaluates the welfare cost of procrastination in removing these types of controls.
|Item Type:||MPRA Paper|
|Original Title:||Temporary controls on capital inflows|
|Keywords:||capital flows controls international interest rates inflation reserve requirements|
|Subjects:||F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F40 - General
F - International Economics > F3 - International Finance > F32 - Current Account Adjustment ; Short-Term Capital Movements
F - International Economics > F3 - International Finance > F31 - Foreign Exchange
|Depositing User:||Carmen Reinhart|
|Date Deposited:||08. Mar 2009 14:34|
|Last Modified:||13. Feb 2013 00:05|
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