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Sunday, August 2, 2020 | History

2 edition of Capital flows, real exchange rates, and capital controls found in the catalog.

Capital flows, real exchange rates, and capital controls

Sebastian Edwards

Capital flows, real exchange rates, and capital controls

some Latin American experiences

by Sebastian Edwards

  • 297 Want to read
  • 38 Currently reading

Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

    Subjects:
  • Capital movements -- Latin America -- Econometric models.,
  • Foreign exchange rates -- Latin America -- Econometric models.,
  • Capital movements -- Chile -- Econometric models.,
  • Capital movements -- Colombia -- Econometric models.

  • Edition Notes

    StatementSebastian Edwards.
    SeriesNBER working paper series -- working paper 6800, Working paper series (National Bureau of Economic Research) -- working paper no. 6800.
    ContributionsNational Bureau of Economic Research.
    Classifications
    LC ClassificationsHB1 .W654 no. 6800
    The Physical Object
    Pagination81 p. :
    Number of Pages81
    ID Numbers
    Open LibraryOL22401423M

      The “capital flow management” measures aim at “protecting exchange rate stability and the savers.” Fitch Ratings now classifies Argentine debt as RD (restricted default); Standard and Poor. This chapter examines both price and flow evidence to determine how effective China's capital controls have been in the past and remain at present. Section describes the increasing openness of the Chinese economy to cross-border flows as background for both price and flow analysis. Section reviews and updates the price evidence that capital controls are still binding.

    Exchange Rates with Volatile Capital Flows Emmanuel Farhi Harvard University Iván Werning To understand the effects of capital controls with flexible exchange rates, consider the models in these papers are real, and as a result, optimal capital controls are independent of the exchange rate . exchange rate risk. On the impact of capital flows and the exchange rate regime on monetary policy, the paper finds that domestic short-term interest rates are significantly affected by foreign interest rates, especially for countries with high capital mobility and less than fully floating exchange rates.

      When the Chinese government wanted to damn the great Yangtze River, it moved more than a million people. When it wanted ring roads running through the 20 million people of Beijing, China built miles in less than 30 years. So, when Chinese leaders say that they want Shanghai to be a . (). Capital flows, exchange rate management and monetary policy. Macroeconomics and Finance in Emerging Market Economies: Vol. 1, No. 1, pp.


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Capital flows, real exchange rates, and capital controls by Sebastian Edwards Download PDF EPUB FB2

Capital flows, real exchange rates, and capital controls. Cambridge, MA: National Bureau of Economic Research, © (OCoLC) Material Type: Internet resource: Document Type: Book, Internet Resource: All Authors / Contributors: Sebastian Edwards; National.

These calls for the greater use of capital controls to manage the real exchange rate stand at odds with the empirical literature on the effectiveness of controls, which has not found clear evidence that controls can influence this variable (for detailed reviews of this literature see Engel () and Magud et al.

()). 3 Several empirical Cited by: 3. Chapter Exchange Rates and International Capital Flows. Introduction to Exchange Rates and International Capital Flows; How the Foreign Exchange Market Works; Demand and Supply Shifts in Foreign Exchange Markets; Macroeconomic Real exchange rates of Exchange Rates; Exchange Rate Policies; Chapter Government Budgets and Fiscal PolicyAuthor: OpenStax.

Downloadable. This paper deals with some of the most important aspects of Latin America's experience with capital flows during the last twenty-five years. The paper begins with a historical analysis. I then deal with the sequencing of reform and discuss issues related to the relationship between capital flows, real exchange rates, and international competitiveness.

Capital Controls and Exchange Rates with Volatile Capital Flows”, IMF Economic Review Farhi, E and I Werning (), “A Theory of Macroprudential Policies in the Presence of Nominal Rigidities”, Econometrica 84 (5): Capital Controls and Exchange Rates with Volatile Capital Flows Emmanuel Farhi Harvard University Iván Werning MIT October We consider a standard New Keynesian model of a small open economy with nom-inal rigidities and study optimal capital controls.

Consistent with the Mundellian view, we find that the exchange rate regime is key. Capital control represents any measure taken by a government, central bank or other regulatory body to limit the flow of foreign capital in and out of the domestic economy.

These controls. Financial Development and Capital Flows: The Effect on the Real Exchange Rate. By Ali Lamouchi & Ezzeddine Zouari. University of Sousse, Tunisia. Abstract - The object of this paper is to determine the role played by the financial development in the effect of capital flows on real effective exchange rates.

Our object is based on the idea that a. Machine-readable bibliographic record - MARC, RIS, BibTeX Document Object Identifier (DOI): /w Published: Capital Flows, Real Exchange Rates, and Capital Controls: Some Latin American Experiences, Sebastian Edwards.

in Capital Flows and the Emerging Economies: Theory, Evidence, and Controversies, Edwards. Users who downloaded this paper also downloaded*. In the wake of the East Asian, Russian, and Brazilian currency crises of the s, a growing chorus of observers and economists (for example, Radelet and Sachsand Stiglitz ) has argued that an underlying cause of – or at least a contributing factor to – such disruptions is the liberalization of international capital flows, especially when combined with fixed exchange rates.

is a vast literature on the effect of capital controls on the exchange rate. Magud, Reinhart and Rogoff () provide an excellent survey and meta-analysis of that literature.

The evidence on the effectiveness of controls on reducing the volume of flows, and hence exchange rate pressures, is mixed.

Capital Flows, Real Exchange Rates, and Capital Controls: Some Latin American Experiences Sebastian Edwards. Chapter in NBER book Capital Flows and the Emerging Economies: Theory, Evidence, and Controversies (), Sebastian Edwards, editor (p. - ) Conference held FebruaryPublished in January by University of Chicago Press.

How China's Capital Controls Help Manage its Foreign Exchange Rate. China's recent controls have principally affected domestic businesses and households. However, foreign businesses may face uncertainty in international trade with China if authorities continue to use capital and exchange controls to manage the yuan's exchange rate.

Read Article. Optimal capital controls and real exchange rate policies: () show that restrictions to capital flows can be welfare improving in an economy with multiple goods, incomplete financial markets, and inefficient production, but do not discuss issues of optimal mix between ex-ante and ex-post interventions.

Ottonello. Keywords: capital flows, capital controls, real exchange rate, international reserves, sterilized foreign exchange reserve intervention, financial repression, mercantilism, China. Note: This paper was prepared for the National Bureau of Economic Research (NBER) International Seminar on Macro.

Determinants of capital flows and exchange rates. they find that world interest rate declines explain much of the pattern of capital inflows and real exchange rate appreciation observed in Asian countries. Carmen Reinhart and R. Todd Smith examine several countries that imposed controls on capital inflows and conclude that, while these.

Capital Flows and Exchange Rate Policy. lifting controls on interest rates, on capital flows, and on the convertibility of domestic currencies. For most countries, this tilt toward financial liberalization has proven more a curse than a blessing. the real economic stresses of dollar pegging (repressed economic growth to prevent.

Consistent with the Mundellian view, we find that the exchange rate regime is key. However, in contrast with the Mundellian view, we find that capital controls are desirable even when the exchange rate is flexible.

Optimal capital controls lean against the wind and help smooth out capital flows. The impossible trinity (also known as the trilemma) is a concept in international economics which states that it is impossible to have all three of the following at the same time.

a fixed foreign exchange rate; free capital movement (absence of capital controls); an independent monetary policy; It is both a hypothesis based on the uncovered interest rate parity condition, and a finding from. Malaysian Capital Controls Ron Hood EASPR Abstract: Controls on international capital flows were implemented by the Malaysian authorities late in the evolution of the Asia crisis.

The bulk of the portfolio outflows were already over. The exchange rate had depreciated sharply and was fixed at an undervalued level making further capital flight. Capital controls are residency-based measures such as transaction taxes, other limits, or outright prohibitions that a nation's government can use to regulate flows from capital markets into and out of the country's capital measures may be economy-wide, sector-specific (usually the financial sector), or industry specific (for example, "strategic" industries).This article focuses on the possible role of capital flows in explaining exchange rate movements.

Some commentators have suggested that a substantial increase in capital flows into the United.6. Capital Flows and the Behavior of Emerging Market Equity Returns Geert Bekaert and Campbell R.

Harvey III. Capital Flows to Latin America, Asia, and Eastern Europe 7. Capital Flows, Real Exchange Rates, and Capital Controls: Some Latin American Experiences Sebastian Edwards Comment: José De Gregorio 8. Capital Flows in Asia Takatoshi Ito.