Temporary Controls on Capital Inflows / Carmen M. Reinhart, R. Todd Smith.

Format:

Book

Author/Creator:

Reinhart, Carmen M.

Contributor:

National Bureau of Economic Research.

Smith, R. Todd.

Series:

Working Paper Series (National Bureau of Economic Research) no. w8422.

NBER working paper series no. w8422

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2001.

Summary:

During the past decade a number of countries imposed capital controls that had two distinguishing features: they were asymmetric, in that they were designed principally to discourage capital inflows, and they were temporary. This paper studies formally the consequences of these policies, calibrates their potential effectiveness, and assesses their welfare implications in an environment in which the level of capital inflows can be sub-optimal. In addition, motivated by the fact that these types of controls have often been left in place after the dissipation of the shock that lead to the controls being implemented, the paper evaluates the welfare cost of procrastination in removing these types of controls.

Notes:

Print version record

August 2001.