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:
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
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