{
  "title": "Effectiveness of Capital Controls in Selected Emerging Markets in the 2000's",
  "publication": "IMF Working Papers, December 1, 2011",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/effectiveness-of-capital-controls-in-selected-emerging-markets-in-the-2000-s-25401",
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  "summary": "This paper estimates the effectiveness of capital controls in response to inflow surges in Brazil, Colombia, Korea, and Thailand in the 2000s.",
  "sections": [
    {
      "heading": "Overview and objective",
      "content": "- Paper estimates the effectiveness of capital controls in response to inflow surges in Brazil, Colombia, Korea, and Thailand in the 2000s.\n- Authors: Chikako Baba, Annamaria Kokenyne.\n- Date: December 1, 2011."
    },
    {
      "heading": "Main empirical findings",
      "content": "- Controls are generally associated with a decrease in inflows.\n- Controls are generally associated with a lengthening of maturities.\n- The relationship between controls and inflows/maturities is not statistically significant in all cases.\n- The effects of controls are temporary.\n- Controls are more successful in providing room for monetary policy than in dampening currency appreciation pressures."
    },
    {
      "heading": "Interpretation and conditional factors",
      "content": "- The macroeconomic impact of capital controls depends on:\n  - the extensiveness of the policy,\n  - the level of capital market development,\n  - the support provided by other policies,\n  - the persistence of capital flows."
    },
    {
      "heading": "Policy implications and emphasis",
      "content": "- Capital controls can be a tool to create space for monetary policy during inflow surges.\n- Capital controls are less reliable as a tool to prevent currency appreciation.\n- Effectiveness is context-dependent; policymakers should consider market development, policy design breadth, complementary policies, and expected persistence of flows when deciding on controls."
    },
    {
      "heading": "Keywords and subjects covered",
      "content": "- Subjects: Balance of payments, Business cycles, Capital controls, Capital flows, Capital inflows, Current account balance, Economic growth.\n- Keywords: Business cycles; capital; capital control; capital controls; Capital flows; Capital inflows; control index; currency appreciation; Current account balance; emerging market economies; Global; inflow control; interest rate differential; outflow control index; outflow control liberalization; outflow liberalization; policy in Brazil; private capital flows; The URR; WP.\n\nEffectiveness of Capital Controls in Selected Emerging Markets in the 2000's — Chikako Baba, Annamaria Kokenyne, December 1, 2011.\n\n---\n\n Content in this bundle\n\n- wp11281\n  - wp11281 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp11281 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/effectiveness-of-capital-controls-in-selected-emerging-markets-in-the-2000-s-25401"
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    "Authors: Chikako Baba, Annamaria Kokenyne",
    "Published: December 1, 2011",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781463926625.001",
    "Paper estimates the effectiveness of capital controls in response to inflow surges in Brazil, Colombia, Korea, and Thailand in the 2000s.",
    "Authors: Chikako Baba, Annamaria Kokenyne.",
    "Date: December 1, 2011.",
    "Controls are generally associated with a decrease in inflows.",
    "Controls are generally associated with a lengthening of maturities.",
    "The relationship between controls and inflows/maturities is not statistically significant in all cases.",
    "The effects of controls are temporary.",
    "Controls are more successful in providing room for monetary policy than in dampening currency appreciation pressures.",
    "The macroeconomic impact of capital controls depends on:",
    "Capital controls can be a tool to create space for monetary policy during inflow surges.",
    "Capital controls are less reliable as a tool to prevent currency appreciation.",
    "Effectiveness is context-dependent; policymakers should consider market development, policy design breadth, complementary policies, and expected persistence of flows when deciding on controls.",
    "Subjects: Balance of payments, Business cycles, Capital controls, Capital flows, Capital inflows, Current account balance, Economic growth.",
    "Keywords: Business cycles; capital; capital control; capital controls; Capital flows; Capital inflows; control index; currency appreciation; Current account balance; emerging market economies; Global; inflow control; interest rate differential; outflow control index; outflow control liberalization; outflow liberalization; policy in Brazil; private capital flows; The URR; WP.",
    "**_wp11281**"
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