Temporary controls on capital inflows

Carmen Reinhart and Richard Smith

MPRA Paper from University Library of Munich, Germany

Abstract: During the past decade a number of countries imposed capital controls that had two distinguishing features: they were asymmetric, in that they were designed principally to discourage capital inflows, and they were temporary. This paper studies formally the consequences of these policies, calibrates their potential effectiveness, and assesses their welfare implications in an environment in which the level of capital inflows can be suboptimal. In addition, motivated by the fact that these types of controls have often been left in place after the dissipation of the shock that lead to the controls being implemented, the paper evaluates the welfare cost of procrastination in removing these types of controls.

Keywords: capital; flows; controls; international; interest; rates; inflation; reserve; requirements (search for similar items in EconPapers)
JEL-codes: F31 F32 F40 (search for similar items in EconPapers)
Date: 2002-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (51)

Published in Journal of International Economics 2.57(2002): pp. 327-351

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/13863/1/MPRA_paper_13863.pdf original version (application/pdf)

Related works:
Journal Article: Temporary controls on capital inflows (2002)
Working Paper: Temporary Controls on Capital Inflows (2001)
Working Paper: Too much of a good thing: The macroeconomic effects of taxing capital inflows (1998)
Journal Article: Too much of a good thing: the macroeconomic effects of taxing capital inflows (1996)
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:pra:mprapa:13863

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().