Domestic and multilateral effects of capital controls in emerging markets

• 成果类型: Article
• 署名作者: Pasricha, Gurnain Kaur; Falagiarda, Matteo; Bijsterbosch, Martin; Aizenman, Joshua
• 署名单位: Bank of Canada; European Central Bank; University of Southern California; National Bureau of Economic Research
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2018.08.005
• 发表日期: 2018
• 页码: 48-58
• 关键词: Capital controls; capital flows; Monetary policy trilemma; Cross-border spillovers

摘要

Using a novel, high frequency dataset on capital control actions in 16 emerging market economies (EMEs) from 2001 to 2012, we provide new evidence on the domestic and multilateral effects of capital controls. Increases in capital account openness reduce monetary policy autonomy and increase exchange rate stability, confirming the constraints of the monetary policy trilemma. Both gross in- and outflows rise, while the effect on net capital flows is ambiguous. Tighter capital inflow restrictions generated significant spillovers, especially in the post-2008 environment of abundant global liquidity. We also find evidence of a domestic policy response to foreign capital control changes in countries that are affected by these spillovers. Crown Copyright (C) 2018 Published by Elsevier B.V. All rights reserved.