Eliana Cardoso (International Monetary Fund) Ilan Goldfajn (International Monetary Fund)
Abstract
This paper creates an index of capital controls to analyze the determinants of capital flows to Brazil, accounting for the endogeneity of capital controls by considering a government that sets controls in response to capital flows. It finds that the government reacts strongly to capital flows by increasing controls on inflows during booms and relaxing them in moments for distress. The paper estimates a vector autoregression with capital flows, controls, and interest differentials. It shows that controls have been tempoarily effective in altering levels an composition of capital flows but have had no sustained effects in the long run. Copyright 1998, International Monetary Fund
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Article provided by Palgrave Macmillan Journals in its journal IMF Staff Papers.
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Find related papers by JEL classification: F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Nicolas Magud & Carmen M. Reinhart, 2007.
"Capital Controls: An Evaluation,"
NBER Chapters,
in: Capital Controls and Capital Flows in Emerging Economies: Policies, Practices and Consequences, pages 645-674
National Bureau of Economic Research, Inc.
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