Controls on Capital Inflows and the Transmission of External Shocks

In this paper we attempt to analyse whether price-based controls on capital inflows are successful in insulating economies against external shocks. We present results from vector autoregressive (VAR) models, which indicate that Chile and Colombia, countries that adopted controls on capital inflows,...

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Main Author:	David, Antonio C.
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Current Account Adjustment Short-term Capital Movements F320 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240
Online Access:	http://hdl.handle.net/10986/5579

id	okr-10986-5579
recordtype	oai_dc
spelling	okr-10986-55792021-04-23T14:02:22Z Controls on Capital Inflows and the Transmission of External Shocks David, Antonio C. Current Account Adjustment Short-term Capital Movements F320 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240 In this paper we attempt to analyse whether price-based controls on capital inflows are successful in insulating economies against external shocks. We present results from vector autoregressive (VAR) models, which indicate that Chile and Colombia, countries that adopted controls on capital inflows, seem to have been relatively well insulated against certain types of external disturbances. Subsequently, we use the autoregressive distributive lag (ARDL) approach to co-integration in order to isolate the effects of the capital controls on the pass-through of external disturbances to domestic interest rates in those economies. We conclude that there is evidence that the capital controls have allowed for greater policy autonomy. 2012-03-30T07:33:31Z 2012-03-30T07:33:31Z 2008 Journal Article Cambridge Journal of Economics 0309166X http://hdl.handle.net/10986/5579 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Current Account Adjustment Short-term Capital Movements F320 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240
spellingShingle	Current Account Adjustment Short-term Capital Movements F320 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240 David, Antonio C. Controls on Capital Inflows and the Transmission of External Shocks
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	In this paper we attempt to analyse whether price-based controls on capital inflows are successful in insulating economies against external shocks. We present results from vector autoregressive (VAR) models, which indicate that Chile and Colombia, countries that adopted controls on capital inflows, seem to have been relatively well insulated against certain types of external disturbances. Subsequently, we use the autoregressive distributive lag (ARDL) approach to co-integration in order to isolate the effects of the capital controls on the pass-through of external disturbances to domestic interest rates in those economies. We conclude that there is evidence that the capital controls have allowed for greater policy autonomy.
format	Journal Article
author	David, Antonio C.
author_facet	David, Antonio C.
author_sort	David, Antonio C.
title	Controls on Capital Inflows and the Transmission of External Shocks
title_short	Controls on Capital Inflows and the Transmission of External Shocks
title_full	Controls on Capital Inflows and the Transmission of External Shocks
title_fullStr	Controls on Capital Inflows and the Transmission of External Shocks
title_full_unstemmed	Controls on Capital Inflows and the Transmission of External Shocks
title_sort	controls on capital inflows and the transmission of external shocks
publishDate	2012
url	http://hdl.handle.net/10986/5579
_version_	1764395549351477248

Controls on Capital Inflows and the Transmission of External Shocks

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