{
  "title": "Capital Flows to Brazil: The Endogeneity of Capital Controls",
  "publication": "IMF Working Papers, September 1, 1997",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/capital-flows-to-brazil-the-endogeneity-of-capital-controls-2334",
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  "summary": "This paper creates an index of capital controls to analyze the determinants of capital flows to Brazil, accounting for the endogeneity of capital controls by considering a government that sets controls in response to capital flows.",
  "sections": [
    {
      "heading": "Research question and scope",
      "content": "- Examines determinants of capital flows to Brazil while accounting for the endogeneity of capital controls by modeling a government that sets controls in response to capital flows.\n- Focuses on private capital flows, capital inflows, capital outflows, and the interaction with capital control measures and interest differentials."
    },
    {
      "heading": "Data and methodology",
      "content": "- Constructs an index of capital controls for Brazil.\n- Estimates a vector autoregression (VAR) with:\n  - capital flows,\n  - controls,\n  - interest differentials.\n- Publication details:\n  - Authors: Eliane A. Cardoso, Ilan Goldfajn\n  - Date: September 1, 1997\n  - Pages: 48\n  - Volume: 1997\n  - Issue: 115\n  - Series: Working Paper No. 1997/115\n  - DOI: https://doi.org/10.5089/9781451942989.001\n  - Stock No: WPIEA1151997\n  - ISBN: 9781451942989\n  - ISSN: 1018-5941"
    },
    {
      "heading": "Key findings",
      "content": "- The government reacts strongly to capital flows:\n  - increases controls on inflows during booms,\n  - relaxes controls in moments of distress.\n- Controls have been temporarily effective in altering:\n  - levels of capital flows,\n  - composition of capital flows.\n- Controls have had no sustained effects in the long run."
    },
    {
      "heading": "Policy implications",
      "content": "- Capital controls can be used as a short-term policy tool to influence the level and composition of flows.\n- Reliance on controls alone is unlikely to produce long-run changes in capital flow dynamics given the lack of sustained effects identified.\n\nIMF Working Paper: \"Capital Flows to Brazil: The Endogeneity of Capital Controls\", Eliane A. Cardoso and Ilan Goldfajn, September 1, 1997 (Working Paper No. 1997/115).\n\n---\n\n Content in this bundle\n\n- Capital Flows to Brazil: The Endogeneity of Capital Controls -WP/97/115\n  - Capital Flows to Brazil: The Endogeneity of Capital Controls -WP/97/115 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Capital Flows to Brazil: The Endogeneity of Capital Controls -WP/97/115 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/capital-flows-to-brazil-the-endogeneity-of-capital-controls-2334"
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    "Authors: Eliane A. Cardoso, Ilan Goldfajn",
    "Published: September 1, 1997",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451942989.001",
    "Examines determinants of capital flows to Brazil while accounting for the endogeneity of capital controls by modeling a government that sets controls in response to capital flows.",
    "Focuses on private capital flows, capital inflows, capital outflows, and the interaction with capital control measures and interest differentials.",
    "Constructs an index of capital controls for Brazil.",
    "Estimates a vector autoregression (VAR) with:",
    "Publication details:",
    "The government reacts strongly to capital flows:",
    "Controls have been temporarily effective in altering:",
    "Controls have had no sustained effects in the long run.",
    "Capital controls can be used as a short-term policy tool to influence the level and composition of flows.",
    "Reliance on controls alone is unlikely to produce long-run changes in capital flow dynamics given the lack of sustained effects identified.",
    "**Capital Flows to Brazil: The Endogeneity of Capital Controls -WP/97/115**"
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