Capital controls and financial crises

by Joshua Aizenman

Publisher: National Bureau of Economic Research in Cambridge, MA

Written in English
Published: Pages: 22 Downloads: 86
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Subjects:

  • Investments, Foreign -- Government policy -- Developing countries -- Econometric models.,
  • Capital market -- Government policy -- Developing countries -- Econometric models.,
  • Capital movements -- Government policy -- Developing countries -- Econometric models.,
  • Financial crises -- Government policy -- Developing countries -- Econometric models.,
  • Devaluation of currency -- Developing countries -- Econometric models.,
  • Foreign exchange rates -- Developing countries -- Econometric models.

Edition Notes

Other titlesFinancial crises and capital controls
StatementJoshua Aizenman
SeriesNBER working paper series -- working paper no. 7398, Working paper series (National Bureau of Economic Research) -- working paper no. 7398.
ContributionsNational Bureau of Economic Research.
Classifications
LC ClassificationsHB1 .W654 no. 7398
The Physical Object
Pagination22 p. :
Number of Pages22
ID Numbers
Open LibraryOL22393018M

  The movement to outlaw capital controls lost steam given that premature capital account liberalisation in part caused the Asian Crisis of and that nations such as Malaysia used capital. Capital The Eu And The Global Financial Crisis Capital The Eu And The Global Financial Crisis by Jean-Pierre Cabestan. Download it China And The Global Financial Crisis books also available in PDF, EPUB, and Mobi Format for read it on your Kindle device, PC, phones or tablets. This book examines China's response to the global financial crisis, and the resulting new status acquired by.   Catching up on my Willem Buiter, I find this interesting piece on capital controls in the response to the European crisis, which begins. When Iceland’s banking system and currency collapsed last September, a key component of the emergency package that was introduced under the auspices of the IMF were controls on capital outflows, implemented through rigorous foreign exchange controls.   One of the legacies of the – global financial crisis has been a reassessment of the potential for restriction of capital flows policies. This paper documents a set of stylized facts on capital controls along their intensive and extensive margins .

Iceland, Greece and Cyprus used controls fairly successfully to stem capital outflows (and, in Reykjavik’s case, protect its currency) in the aftermath of the global financial crisis. China’s. These exist to prevent a sudden and unanticipated huge capital flight in the periods of crisis or alternatively a speculative hedge fund type of attack on a national currency exchange rate. Capital controls have similarly become reduced by the twin influences of the impacts of globalization and financial market integration.   A new consensus favoring open capital markets lasted until the Asian financial crises of the late s provided provisional evidence that capital controls could work: Malaysia recovered swiftly.   The country has imposed capital controls and announced a re-profiling of its debt payments. Its sovereign debt has been downgraded deeper into junk territory by Moody’s, and to selective default.

Capital controls and financial crises by Joshua Aizenman Download PDF EPUB FB2

Capital controls during financial crises: the case of Malaysia and Thailand / Hali J. Edison and Carmen M. Reinhart [Edison, Hali J] on *FREE* shipping on qualifying offers. Capital controls during financial crises: the case of Malaysia and Thailand / Author: Hali J Edison.

This paper analyzes the effects of capital controls and crises on international financial integration, using data on stocks from emerging economies that trade in domestic and international markets.

The cross-market premium (the ratio between the domestic and international market price of cross-listed stocks) provides a valuable measure of how. Keywords: Capital Controls, Capital Flows, Financial Crises, Asian Currency Crisis, Cross-Border Volatility, Malaysia, and Thailand.

JEL classification: F21 and F32 * The first author is a senior economist in the Division of International Finance, Board of Governors of the Federal Reserve System, Washington, D.C.

U.S.A. and the second. Capital Flows Capital Controls And Currency Crises Capital Flows Capital Controls And Currency Crises by Felipe Larraín B.

Download it Capital Flows Capital Controls And Currency Crises books also available in PDF, EPUB, and Mobi Format for read it on your Kindle device, PC, phones or tablets. Examines the resurgence in private capital inflows experienced by Latin America during the s.

The issues of capital controls and financial crises have been widely debated in economic literature. Some economists argue that controls on capital are becoming difficult to maintain, especially in a liberalising financial system.

Capital Controls and Financial Crises Joshua Aizenman. NBER Working Paper No. Issued in October NBER Program(s):International Trade and Investment The purpose of this paper is to explain the reluctance of developing countries to open up their capital market to foreigners, and the conditions inducing an emerging market economy to switch its policies.

Hastings: Financial Crisis and Capital Controls economist Paul Krugman endorsed exchange controls as a short-term policy option to get a government's macro-economic house in order.8 Economist Dani Rodrik carried out a country study of the costs of capital controls, and found that 'countries without capital controls have not grown faster.

Gabriel Palma, "The Three Routes to Financial Crises: The Need for Capital Controls," SCEPA working paper series. SCEPA's Capital controls and financial crises book areas of research are macroeconomic policy, inequality and poverty, and globalization.Schwartz Center for. We examine the first widespread use of capital controls in response to a global or regional financial crisis.

In particular, we analyze whether capital controls mitigated capital flight in the s and assess their causal effects on macroeconomic recovery from the Great Depression. The combination of the three policies, Fixed Exchange Rate and Free Capital Flow and Independent Monetary Policy, is known to cause financial crisis.

The Mexican peso crisis (–), the Asian financial crisis (–), and the Argentinean financial. Crises, Controls, and Financial Integration Eduardo Levy Yeyati Sergio L. Schmukler Neeltje Van Horen* July Abstract This paper analyzes the effects of capital controls and crises on financial integration.

To do so, it uses stocks from emerging economies that trade in. Capital Controls in Greece. The possibility that Greece might need capital controls was widely discussed from the time of its first bailout, in 16 But Greece managed to avoid capital controls – until the renewed crisis in Like Cyprus, Greece is a member of the euro, and therefore cannot produce its own currency.

Buckley: The Role of Capital Controls in Financial Crises. Produced by The Berkeley Electronic Press, () 11 BOND LR. debt crisis in the s. Fascinatin gly, however, for the first.

Recently it has provided a major laboratory experiment of the use of capital controls at a time of crisis when a country is highly integrated in the world capital market.

This excellent book presents the first careful analysis of the nature and effects of these controls, as well as providing a thorough background of how the Asian crisis played Author: Premachandra Athukoralge. This paper analyzes the effects of capital controls and crises on financial integration, using stocks from emerging economies that trade in both domestic and international markets.

The cross-market premium (the ratio between the domestic and the international market price of cross-listed stocks) provides a valuable measure of how capital. The Global Financial Crisis has triggered a transformation in thinking and practice regarding the role of government in managing international capital flows.

This chapter traces and evaluates the reemergence of capital controls as legitimate tools to promote financial stability. Summary: Capital controls are not new but have been used by most countries until recently, and many nations still have them. The UNCTAD Report describes a wide range of capital controls that have been or can be used, and for which purposes.

UNCTAD says recent financial crises and frequent use of capital controls by countries to contain the. Shah, I. Patnaik, in The Evidence and Impact of Financial Globalization, Policy Questions About Capital Controls and Monetary Policy. India has evolved a complex system of capital a single capital controls manual was released by the government, it would run to.

This book addresses the causes and consequences of the international financial crisis of A range of esteemed contributors explore developments in the United States, where the crisis of originated, as well as the smallest country affected, Iceland, by evaluating developments since Get this from a library.

Capital controls and financial crises. [Joshua Aizenman; National Bureau of Economic Research.] -- Abstract: The purpose of this paper is to explain the reluctance of developing countries to open up their capital market to foreigners, and the. Get this from a library.

Crises, capital controls, and financial integration. [Eduardo Levy Yeyati; Sergio L Schmukler; Neeltje van Horen; World Bank.] -- "This paper analyzes the effects of capital controls and crises on international financial integration, using data on stocks from emerging economies that trade in domestic and international markets.

Book Description. Heterodox Macroeconomics offers a detailed understanding of the foundations of the recent global financial crisis. The chapters, from a selection of leading academics in the field of heterodox macroeconomics, carry out a synthesis of heterodox ideas that place financial instability, macroeconomic crisis, rising global inequality and a grasp of the perverse and pernicious.

According to Reinhart and Rogoff’s seminal book on financial crises, This Time Is Different, “Periods of high international capital mobility have repeatedly produced banking crises.” It is notable that this is a strong correlation even without the financial crisis while the heyday of capital controls between and the s was a.

Downloadable. This study examines the impact capital controls had in Malaysia () and Thailand (). We aim to assess the extent to which the capital controls were effective in delivering the outcomes that motivated their imposition.

We conclude that in Thailand the controls did not deliver much of what was intended--although, one does not observe the counterfactual.

PDF | On Mar 1,Hali J. Edison and others published Capital Controls During Financial Crises: The Case of Malaysia and Thailand | Find, read and cite all the research you need on ResearchGate. Capital controls are residency-based measures such as transaction taxes, other limits, or outright prohibitions that a nation's government can use to regulate flows from capital markets into and out of the country's capital measures may be economy-wide, sector-specific (usually the financial sector), or industry specific (for example, "strategic" industries).

After a decade of financial isolation from world private capital markets following the external debt crisis of the early s, Latin America became an effective magnet for private capital in the s. Two major events, however, altered an otherwise positive picture for this region: the Mexican crisis of and the Asian crisis of The following article on "Using Capital Controls to Reduce a Crisis" is the third in a series on the.

UNCTAD report. USING CAPITAL CONTROLS TO REDUCE A CRISIS. by Martin Khor, Director, Third World Network. Capital controls are not a new measure but have instead been used by most countries until recently, and many nations still have them.

An account of the significant though gradual, uneven, disconnected, ad hoc, and pragmatic innovations in global financial governance and developmental finance induced by the global financial crisis. The open access edition of this book was made possible by generous funding from Arcadia – a charitable fund of Lisbet Rausing and Peter Baldwin.

The right policy framework for capital controls for a country may be based on initial conditions. While capital controls may be useful in maintaining financial stability, the Indian experience suggests that in its review next year, the IMF would do well to focus on the yardsticks of.

Forbes’ academic research addresses policy-related questions in international macroeconomics. Recent projects include work on exchange rate pass-through, capital flows, macroprudential regulation, financial crises, contagion, current account imbalances, capital controls, inflation dynamics, foreign investment, and tax holidays.

Capital controls can deter investors. After the s Latin American crisis, several countries reimposed capital controls, however, this deterred foreign investors who were more dubious about investing in a developing economy with capital controls.

Capital control requires restrictions on personal finance. For example, in the s, the UK had.Unlike other crisis-hit economies in the region (e.g.

Indonesia, Korea, Thailand), Malaysia was not going to call-in the IMF and followed its own policy strategy which was to impose capital controls .