Capital Controls and Deviations from Proposed Interest Rate Parity: Mexico 1982
An intervention analysis of the Mexican capital control policy of August 1982 shows the policy to have had a negative, but temporary, impact on the Mexican deviation from interest rate parity. Previous studies concerning the impact of capital control interventions have predicted positive effects of capital control policies. These stem from the effective tax capital controls place on foreign capital inflows. When capital controls are also designed to restrict domestic capital outflows, however, their net effect becomes an empirical, rather than theoretical, question. Copyright 1990 by Oxford University Press.
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Volume (Year): 28 (1990)
Issue (Month): 2 (April)
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