{
  "title": "Regulating Capital Flows at Both Ends: Does it Work?",
  "publication": "IMF Working Papers, October 17, 2014",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/regulating-capital-flows-at-both-ends-does-it-work-42400",
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  "summary": "This paper examines whether cross-border capital flows can be regulated by imposing capital account restrictions (CARs) in both source and recipient countries, as was originally advocated by John Maynard Keynes and Harry Dexter White.",
  "sections": [
    {
      "heading": "Research question and scope",
      "content": "- Examines whether cross-border capital flows can be regulated by imposing capital account restrictions (CARs) in both source and recipient countries.\n- Historical inspiration: original advocacy by John Maynard Keynes and Harry Dexter White.\n- Sample and timeframe:\n  - Bilateral cross-border bank flows from 31 source to 76 recipient (advanced and emerging market) countries.\n  - Period: 1995–2012."
    },
    {
      "heading": "Data and methodology",
      "content": "- Combines bilateral cross-border bank flow data with a new and comprehensive dataset on various outflow and inflow related capital controls and prudential measures in the sampled countries.\n- Focus: impact of CARs and prudential measures on the volume of cross-border bank flows."
    },
    {
      "heading": "Key findings",
      "content": "- CARs at either end (source or recipient) can significantly influence the volume of cross-border bank flows.\n- Restrictions imposed at both ends are associated with a larger reduction in flows than restrictions at only one end.\n- Evidence of cross-border spillovers:\n  - Inflow restrictions imposed by countries are associated with larger flows to other countries (i.e., diversion effects)."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Findings suggest useful scope for policy coordination:\n  - Between source and recipient countries to better manage potentially disruptive flows.\n  - Among recipient countries to address spillovers and diversion effects.\n- Coordination could improve management of cross-border banking flows and reduce unintended redirection of capital.\n\n---\n\n Content in this bundle\n\n- Microsoft Word - WP-CB flows-18Oct2014.docx\n  - Microsoft Word - WP-CB flows-18Oct2014.docx (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Microsoft Word - WP-CB flows-18Oct2014.docx (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/regulating-capital-flows-at-both-ends-does-it-work-42400"
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    "Authors: Atish R. Ghosh, Mahvash S Qureshi, Naotaka Sugawara",
    "Published: October 17, 2014",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781498358743.001",
    "Examines whether cross-border capital flows can be regulated by imposing capital account restrictions (CARs) in both source and recipient countries.",
    "Historical inspiration: original advocacy by John Maynard Keynes and Harry Dexter White.",
    "Sample and timeframe:",
    "Combines bilateral cross-border bank flow data with a new and comprehensive dataset on various outflow and inflow related capital controls and prudential measures in the sampled countries.",
    "Focus: impact of CARs and prudential measures on the volume of cross-border bank flows.",
    "CARs at either end (source or recipient) can significantly influence the volume of cross-border bank flows.",
    "Restrictions imposed at both ends are associated with a larger reduction in flows than restrictions at only one end.",
    "Evidence of cross-border spillovers:",
    "Findings suggest useful scope for policy coordination:",
    "Coordination could improve management of cross-border banking flows and reduce unintended redirection of capital.",
    "**Microsoft Word - WP-CB flows-18Oct2014.docx**"
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