Pasricha, Gurnain, Falagiarda, Matteo, Bijsterbosch, Martin, Aizenman, Joshua, (2015), “Domestic and multilateral effects of capital controls in emerging markets”, ECB Working Paper, No. 1844, August
Using a novel dataset on changes in capital controls and currency-based prudential measures in 17 major emerging market economies (EMEs) over the period 2001-2011, this paper provides new evidence on domestic and multilateral (or spillover) effects of capital controls before and after the global financial crisis. Our results, based on panel VARs, suggest that capital control actions do not allow countries to avoid the trade-offs of the monetary policy trilemma. Where they have a desired impact on the trilemma variables – net capital inflows, monetary policy autonomy and the exchange rate – the size of that impact is generally small. While we find some evidence of effectiveness before the global financial crisis, the usefulness of these measures
weakened in the post-crisis environment of abundant global liquidity and relatively strong economic growth in EMEs.
Σχετικές Αναρτήσεις
- Ruparel, Raoul, (2015), “The how, what, when and why of Greek capital controls”, Open Europe blog, 12 Ιουνίου
- Davíðsdóttir, S. (2015) “Cyprus and Iceland: a tale of two capital controls“, A Fistful of Euros – European Opinion Blog, 06 Μαρτίου.