Estimated Policy Rules for Capital Controls

Estimated Policy Rules for Capital Controls
Author :
Publisher : International Monetary Fund
Total Pages : 60
Release :
ISBN-10 : 9781513546100
ISBN-13 : 1513546104
Rating : 4/5 (00 Downloads)

Book Synopsis Estimated Policy Rules for Capital Controls by : Gurnain Kaur Pasricha

Download or read book Estimated Policy Rules for Capital Controls written by Gurnain Kaur Pasricha and published by International Monetary Fund. This book was released on 2020-06-05 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper borrows the tradition of estimating policy reaction functions from monetary policy literature to ask whether capital controls respond to macroprudential or mercantilist motivations. I explore this question using a novel, weekly dataset on capital control actions in 21 emerging economies from 2001 to 2015. I introduce a new proxy for mercantilist motivations: the weighted appreciation of an emerging-market currency against its top five trade competitors. This proxy Granger causes future net initiations of non-tariff barriers in most countries. Emerging markets systematically respond to both mercantilist and macroprudential motivations. Policymakers respond to trade competitiveness concerns by using both instruments—inflow tightening and outflow easing. They use only inflow tightening in response to macroprudential concerns. Policy is acyclical to foreign debt; however, high levels of this debt reduces countercyclicality to mercantilist concerns. Higher exchange rate pass-through to export prices, and having an inflation targeting regime with non-freely floating exchange rates, increase responsiveness to mercantilist concerns.


Estimated Policy Rules for Capital Controls Related Books

Estimated Policy Rules for Capital Controls
Language: en
Pages: 60
Authors: Gurnain Kaur Pasricha
Categories: Business & Economics
Type: BOOK - Published: 2020-06-05 - Publisher: International Monetary Fund

DOWNLOAD EBOOK

This paper borrows the tradition of estimating policy reaction functions from monetary policy literature to ask whether capital controls respond to macroprudent
Capital Flight and Capital Controls in Developing Countries
Language: en
Pages: 368
Authors: Gerald A. Epstein
Categories: Capital movements
Type: BOOK - Published: 2005 - Publisher: Edward Elgar Publishing

DOWNLOAD EBOOK

Epstein (economics, U. of Massachusetts) and colleagues look at connections between financial liberalization, financial crises, and capital flight in the 1980s
Ruling Capital
Language: en
Pages: 286
Authors: Kevin P. Gallagher
Categories: Political Science
Type: BOOK - Published: 2015-02-10 - Publisher: Cornell University Press

DOWNLOAD EBOOK

In Ruling Capital, Kevin P. Gallagher demonstrates how several emerging market and developing countries (EMDs) managed to reregulate cross-border financial flow
Capital Controls and the Cost of Debt
Language: en
Pages: 26
Authors: Eugenia Andreasen
Categories: Business & Economics
Type: BOOK - Published: 2017-06-09 - Publisher: International Monetary Fund

DOWNLOAD EBOOK

Using a panel data set for international corporate bonds and capital account restrictions in advanced and emerging economies, we show that restrictions on capit
Taming the Tide of Capital Flows
Language: en
Pages: 489
Authors: Atish R. Ghosh
Categories: Political Science
Type: BOOK - Published: 2018-01-12 - Publisher: MIT Press

DOWNLOAD EBOOK

A comprehensive examination of policy measures intended to help emerging markets contend with large and volatile capital flows. While always episodic in nature,