Optimal capital controls and real exchange rate policies: A pecuniary externality perspective

• 成果类型: Article
• 署名作者: Benigno, Gianluca; Chen, Huigang; Otrok, Christopher; Rebucci, Alessandro; Young, Eric R.
• 署名单位: University of London; London School Economics & Political Science; University of Missouri System; University of Missouri Columbia; Federal Reserve System - USA; Federal Reserve Bank - St. Louis; Johns Hopkins University; National Bureau of Economic Research; University of Virginia
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2016.10.004
• 发表日期: 2016
• 页码: 147-165
• 关键词: Capital controls; Exchange rate policy; financial frictions; financial crises; Financial stability; optimal taxation; Macro-prudential policies

摘要

A new literature studies the use of capital controls to prevent financial crises. Within this new framework, we show that when exchange rate policy is costless, there is no need for capital controls. However, if exchange rate policy entails efficiency costs, capital controls become part of the optimal policy mix. When exchange rate policy is costly, the optimal mix combines prudential capital controls in tranquil times with policies that limit exchange rate depreciation in crisis times. The optimal mix yields more borrowing, fewer and less severe financial crises, and much higher welfare than with capital controls alone. (C) 2016 Elsevier B.V. All rights reserved.