 A Review of Capital Account Restrictions in Chile in the 1990sFrancisco Nadal De Simone and Piritta Sorsa No 1999/052, IMF Working Papers from International Monetary Fund Abstract: This paper examines the Chilean experience with capital controls and reviews studies on controls on capital inflows. Controls on Chile’s inflows had only a temporary impact in reducing specific inflows because they were affected by avoidance. There is some evidence that controls increased interest rates and altered the composition of capital inflows. The studies, however, contain important methodological problems in measuring flows and significant econometric weaknesses, which cast doubt on the robustness of the estimates. No study has assessed the political economy of the controls. It seems premature to view the Chilean experience as supportive of controls on capital inflows. Keywords: WP; capital flow; capital control; central bank; capital outflow; effect of the URR; Capital controls; interest rates and exchange rates; monetary policy; URR tax; interest rate differential; URR variable; URR effectiveness; effectiveness of the URR; transitory capital control; long-term debt; arbitrage condition; flows in Chile; short-term capital flow; short-term capital; Capital inflows; Capital flows; Real exchange rates; Real interest rates; Asia and Pacific (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1999/052 Ordering information: This working paper can be ordered from Access Statistics for this paper More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to econpapers@oru.se.
EconPapers is hosted by the
School of Business at Örebro University.