Capital Controls for Crisis Management Policy in a Global Economy

• 成果类型: Article
• 署名作者: Davis, J. Scott; Devereux, Michael B.
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Dallas; University of British Columbia
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20200073
• 发表日期: 2022
• 页码: 60-82
• 关键词: flows

摘要

Capital controls may be justified as a policy to combat a financial crisis. But for large economies, capital controls may have substantial spillovers to the rest of the world. We investigate the case for capi-tal controls in a large open economy, when domestic financial con-straints may bind during a crisis. When the crisis country is indebted, it must trade off the desire to tax inflows to improve the terms of trade and tax outflows to ease financial constraints. This trade-off renders noncooperative use of capital controls ineffective as crisis manage-ment policy. Effective use of capital controls for crisis management requires international cooperation. (JEL F23, F38, F41, G01, H21, H25)