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A Quantitative Analysis of the Effects of Capital Controls: Spain, 1986-1990

  • Oscar Bajo-Rubio
  • Simón Sosvilla-Rivero

This Paper offers a quantitative assessment of the effectiveness of capital controls in Spain during the period 1986-1990. The analysis is based on a portfolio-balance model Previously estimated for the Spanish economy, where the complete elimination of capital controls is simulated. Our results suggest that capital controls would have avoided a net capital outflow amounting to nearly a 4 per cent increase in the Spanish net foreign asset position, as a quarterly average, during the first five years of Spanish membership into the EU. [C32, F21, F36]

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