Managing Capital Flows — Capital Controls and Foreign Exchange Intervention

Jonathan Ostry

Chapter 3.2 in Taming Capital Flows: Capital Account Management in an Era of Globalization, 2015, pp 171-196 from Palgrave Macmillan

Abstract: Abstract This chapter looks at the role of capital controls and foreign exchange market intervention within the policy toolkit for managing boom-bust cycles in capital flows. It considers the role of policies at the country level as well as the spillovers from those policies and the possible need for multilateral coordination. It argues that both types of policy have an important role to play, but that neither should substitute for warranted external adjustment nor be used to sustain misaligned currency values. Spillovers from the use of such policies are likely, but are not an argument against their use, per se. Nevertheless, when policy interventions themselves carry costs, coordination is likely to enhance global economic welfare, and may well need to include both source and recipient countries.

Keywords: capital control; foreign exchange market intervention (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:pal:intecp:978-1-137-42768-7_8

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137427687

DOI: 10.1057/9781137427687_8

Access Statistics for this chapter

More chapters in International Economic Association Series from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().