Capital Controls and the Timing of Exchange Regime Collapse / Daekuen Park, Jeffrey Sachs.

Format:

Book

Author/Creator:

Park, Daekuen.

Contributor:

National Bureau of Economic Research.

Sachs, Jeffrey.

Series:

Working Paper Series (National Bureau of Economic Research) no. w2250.

NBER working paper series no. w2250

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1987.

Summary:

This paper investigates the nature of balance of payments crises in regimes with capital controls. It extends earlier work on capital controls by assuming that households manage their consumption and asset portfolios to maximize intertemporal utility. Our main result is that capital controls are effective in delaying, but not preventing, a breakdown of a fixed exchange rate regime in the presence of money-financed fiscal deficits.

Notes:

Print version record

May 1987.