BIROn - Birkbeck Institutional Research Online

    Are capital controls in the foreign exchange market effective?

    Straetmans, S.T.M. and Versteeg, Roald J. and Wolff, C.C.P. (2013) Are capital controls in the foreign exchange market effective? Journal of International Money & Finance 35 , pp. 36-53. ISSN 0261-5606.

    Full text not available from this repository.

    Abstract

    One of the reasons for governments to employ capital controls is to obtain some degree of monetary independence. In this paper we test whether capital controls can reduce the link between exchange rates fluctuations and cross border interest differentials. Recent capital control proxies are used in order to determine the date of capital account liberalization for a panel of Western European and emerging countries. Results show that capital controls have a very limited effect on observed deviations from interest parities, even when accounting for the political risk associated with capital controls.

    Metadata

    Item Type: Article
    Keyword(s) / Subject(s): Capital controls, Exchange Rates, Interest differentials, Forward premia, Monetary freedom, Political Risk
    School: School of Business, Economics & Informatics > Economics, Mathematics and Statistics
    Depositing User: Administrator
    Date Deposited: 11 Feb 2013 10:07
    Last Modified: 11 Oct 2016 15:26
    URI: https://eprints.bbk.ac.uk/id/eprint/6143

    Statistics

    Downloads
    Activity Overview
    0Downloads
    271Hits

    Additional statistics are available via IRStats2.

    Archive Staff Only (login required)

    Edit/View Item Edit/View Item