Capital controls impacts: the challenge of policy coordination Online publication date: Mon, 04-Jan-2021
by Chokri Zehri
International Journal of Monetary Economics and Finance (IJMEF), Vol. 13, No. 6, 2020
Abstract: The impacts of capital controls, both domestically and internationally, are still not clearly understood. This study applies a Panel VAR approach to examine these impacts. We use quarterly data from 40 economies over the period between the years 2000 and 2019. Domestically, capital controls allow for more monetary policy autonomy, more exchange rate stability, and, unpredictably, have no impact on international reserves accumulation. Internationally, capital controls lead to negative spillovers between countries introducing them and their neighbouring countries. These effects give rise to the necessity of policy coordination, both domestically and internationally, before deciding to introduce capital controls.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Monetary Economics and Finance (IJMEF):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com