## Capital Mobility and the Output-Inflation Tradeoff

_IMF Working Papers, May 1, 2000_

## Source details

**Canonical URL:** [Capital Mobility and the Output-Inflation Tradeoff](https://www.imf.org/en/publications/wp/issues/2016/12/30/capital-mobility-and-the-output-inflation-tradeoff-3565)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/30/capital-mobility-and-the-output-inflation-tradeoff-3565/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/30/capital-mobility-and-the-output-inflation-tradeoff-3565/index.json)
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## Bibliographic details
- Authors: Assaf Razin, Prakash Loungani, Chi-Wa Yuen
- Published: May 1, 2000
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451851014.001

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### Summary
- Paper title: "Capital Mobility and the Output-Inflation Tradeoff"
- Authors: Assaf Razin, Prakash Loungani, Chi-Wa Yuen
- Date: May 1, 2000
- Series: Working Paper No. 2000/087
- Issue: 087
- Volume: 2000
- Pages: 22
- DOI: https://doi.org/10.5089/9781451851014.001
- ISBN: 9781451851014
- ISSN: 1018-5941
- Core finding: In countries with greater restrictions on capital mobility, a given reduction in the inflation rate is associated with a smaller loss in output.

### Major findings and theoretical framing
- Empirical finding:
  - Greater restrictions on capital mobility are associated with a smaller output loss for a given reduction in the inflation rate.
- Theoretical consistency:
  - The result is shown to be consistent with theoretical presumption from a version of the Mundell-Fleming model.
- Measurement and data sources:
  - Restrictions on capital mobility are measured using the IMF’s Annual Report on Exchange Rate Arrangements and Exchange Restrictions.
  - Estimates of the output-inflation tradeoff are taken from previous studies: Lucas (1973) and Ball, Mankiw and Romer (1988).

### Subject areas and keywords
- Subject: Balance of payments, Capital controls, Economic theory, Foreign exchange, Inflation, International trade, Neoclassical theory, Prices, Real exchange rates, Trade balance
- Keywords: Africa, aggregate demand elasticity, capital controls, capital immobility, capital mobility, immobility case, Inflation, mobility regime, Neoclassical theory, openness, Output-inflation tradeoff, Phillips curve, price level, Real exchange rates, Trade balance, WP

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## Content in this bundle

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/capital-mobility-and-the-output-inflation-tradeoff-3565_