Capital Controls or Macroprudential Regulation?

Capital Controls or Macroprudential Regulation?
International capital flows can create significant financial instability in emerging economies because of pecuniary externalities associated with exchange rate movements. Does this make it optimal to impose capital controls or should policymakers rely on domestic macroprudential regulation? This paper presents a tractable model to show that it... READ MORE...

Publication date: October 2015
ISBN 9781513506463
$18.00

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