Capital Controls: A Meta-analysis Approach

Magud, Nicolas and Reinhart, Carmen and Rogoff, Kenneth (2011): Capital Controls: A Meta-analysis Approach.

Abstract

In this note we summarize our recent paper, where we delved into the details of this apple-to-oranges problem with the aim of defining a minimum common ground. We begin our analysis by explicitly documenting the kinds of measures that are construed as capital controls. Along the way, we describe the more drastic differences across countries/episodes and between controls on inflows and outflows as well a more subtle differences in types of inflow or outflow controls. Given that success is measured differently across studies, we standardize (to some degree) the results across studies. Inasmuch as possible, we highlight episodes that are less well known than the heavily analyzed cases of Chile and Malaysia. Our results are based on a meta-analysis of 37 empirical studies.

• Item Type: MPRA Paper
• Language: English
• Keywords: capital controls, capital inflows, exchange rate, monetary policy
• Subjects: F - International Economics > F3 - International Finance > F32 - Current Account Adjustment ; Short-Term Capital Movements; F - International Economics > F3 - International Finance > F30 - General; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E50 - General; F - International Economics > F3 - International Finance > F33 - International Monetary Arrangements and Institutions

References

Magud, Nicolas, Carmen M. Reinhart, and Kenneth S. Rogoff, “Capital Controls: Myth and Reality—A Portfolio Balance Approach,” NBER Working Paper 16805, February 2011.

Reinhart, Carmen M. and Vincent R. Reinhart, “On the Use of Reserve Requirements in Dealing with the Capital-Flow Problem,” International Journal of Finance and Economics, Vol. 4 No.1, January 1999, 27-54.