How Effective Are Capital Controls?

Sebastian Edwards

Journal of Economic Perspectives, 1999, vol. 13, issue 4, 65-84

Abstract: A number of authors have recently argued that, in order to avoid financial instability, emerging countries should rely on capital controls. Two type of controls have been considered: controls on capital outflows, and controls on capital inflows. In this paper I review the historical evidence on the effectiveness of these two type of controls. I argue that controls on outflows have been ineffective. They are circumvented and breed corruption. I also analyze Chile's recent experience with controls on inflows, and I argue that their effectiveness has been exaggerated.

JEL-codes: F32 O16 O19 (search for similar items in EconPapers)
Date: 1999
Note: DOI: 10.1257/jep.13.4.65
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (289)

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/jep.13.4.65 (application/pdf)

Related works:
Working Paper: How Effective are Capital Controls? (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:jecper:v:13:y:1999:i:4:p:65-84

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

Journal of Economic Perspectives is currently edited by Enrico Moretti

More articles in Journal of Economic Perspectives from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().