IMF Working Papers

Effectiveness of Capital Controls in Selected Emerging Markets in the 2000's

By Chikako Baba, Annamaria Kokenyne

December 1, 2011

Download PDF

Preview Citation

Format: Chicago

Chikako Baba, and Annamaria Kokenyne. Effectiveness of Capital Controls in Selected Emerging Markets in the 2000's, (USA: International Monetary Fund, 2011) accessed November 23, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper estimates the effectiveness of capital controls in response to inflow surges in Brazil, Colombia, Korea, and Thailand in the 2000s. Controls are generally associated with a decrease in inflows and a lengthening of maturities, but the relationship is not statistically significant in all cases, and the effects are temporary. Controls are more successful in providing room for monetary policy than dampening currency appreciation pressures. We argue that the macroeconomic impact of capital controls depends on the extensiveness of the policy, the level of capital market development, the support provided by other policies, and the persistence of capital flows.

Subject: Balance of payments, Business cycles, Capital controls, Capital flows, Capital inflows, Current account balance, Economic growth

Keywords: Business cycles, Capital, Capital control, Capital controls, Capital flows, Capital inflows, Control index, Currency appreciation, Current account balance, Emerging market economies, Global, Inflow control, Interest rate differential, Outflow control index, Outflow control liberalization, Outflow liberalization, Policy in Brazil, Private capital flows, The URR, WP

Publication Details

  • Pages:

    45

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2011/281

  • Stock No:

    WPIEA2011281

  • ISBN:

    9781463926625

  • ISSN:

    1018-5941

You May Also Be Interested In...

Remittances in Times of Uncertainty: Understanding the Dynamics and Implications

November 22, 2024

Fourteenth Periodic Monitoring Report On The Status Of Management Implementation Plans In Response To Board-Endorsed IEO Recommendations

November 21, 2024

EBA-Lite 3.0 Model and Methodology

November 18, 2024

Dynamic Development Accounting and Relative Income Traps

November 1, 2024