How Effective are Capital Controls in Asia?

Gochoco-Bautista, Maria Socorro; Jongwanich, Juthathip; Lee, Jong-Wha

doi:10.2139/ssrn.1793462

Cited by 11 publications

(11 citation statements)

References 21 publications

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“…Third, this paper is part of a rapidly expanding literature on the e¤ectiveness of CFMs on banking and bond ‡ows. Cross-country studies for years before 2009 …nd limited e¤ectiveness of CFMs on the total volume of net capital ‡ows but some e¤ects on the composition of capital ‡ows (Magud et al (2011), Ostry et al (2010, Baba and Kokenyne (2011) and Gochoco-Bautista et al (2012)). Other papers consider the impact on in ‡ows and out ‡ows separately and …nd that capital in ‡ow measures are not e¤ective (Binici et al (2010), Forbes and Warnock (2012) and Zhang and Zoli (2014)).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Therefore, the Schindler index does not fully capture the level or degree of restrictions in place for a country at a point in time as the Quinn index does. Binici et al (2010) and Gochoco-Bautista et al (2012) Unlike the Chinn-Ito index and the Schindler index, which use binary variables for the existence of capital controls, Quinn (1997) construct a data set that contains information on the intensity of controls and covers 64 countries during 1950-1999. This is a de jure index measuring capital account restrictions (or capital account openness).…”

Section: Data Sets On Capital Flow Measures and Domestic Macroprudential Measuresmentioning

confidence: 99%

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Comparative assessment of macroprudential policies

Bruno

Shim

Shin

2017

Journal of Financial Stability

239

135

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BIS Working Papers are written by members of the Monetary and Economic Department of the Bank for International Settlements, and from time to time by other economists, and are published by the Bank. The papers are on subjects of topical interest and are technical in character. The views expressed in them are those of their authors and not necessarily the views of the BIS.This publication is available on the BIS website (www.bis.org).

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Section: Literature Reviewmentioning

confidence: 99%

Section: Data Sets On Capital Flow Measures and Domestic Macroprudential Measuresmentioning

confidence: 99%

Comparative assessment of macroprudential policies

Bruno

Shim

Shin

2017

Journal of Financial Stability

239

135

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“…Table 1 summarizes the sample countries, research period, and result on the effect of CFMs on capital flows in this paper and existing studies. Gochoco-Bautista et al (2012) showed that direct CFMs have a significant effect on capital flows, but these effects differ by asset type and direction of flows. Ahmed and Zlate (2014) found that direct CFMs employed since 2009 significantly affect both net and gross inflows.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Ahmed and Zlate (2014) found that direct CFMs employed since 2009 significantly affect both net and gross inflows. Gochoco-Bautista et al (2012) showed that direct CFMs have a significant effect on capital flows, but these effects differ by asset type and direction of flows. Ostry et al (2012) suggested that direct CFMs are negatively related to share of portfolio debt in total foreign liabilities and enhance financial stability due to large capital flows.…”

Section: Literature Reviewmentioning

confidence: 99%

Capital flow management policies in emerging market economies: Are they successful in mitigating drastic changes of capital flows?

Hwang

Park

2018

Int. J Fin Econ

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This paper constructs a new database for capital flow management policies (CFMs) in 16 emerging market economies from 1999 to 2008 and analyses their effect on extreme capital flow movements. We show that CFMs are effective in mitigating drastic changes of capital flows. We also find that CFMs do not have significant impacts on capital flow volumes. The results suggest that CFMs could be employed as policy toolkits for mitigating extreme capital flow movements without distorting capital flows in a normal period.

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“…See recent studies by Gochoco‐Bautista et al (), McCauley (), Habermeier et al () and Jongwanich et al ().…”

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confidence: 97%

Macroeconomic Stability, Financial Stability, and Monetary Policy Rules

Agénor

Silva

2012

International Finance

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This paper reviews arguments for and against attributing an explicit financial stability objective to monetary policy. The discussion is conducted from the perspective of middle‐income countries (MICs), where bank credit plays a critical role both on the supply and demand sides. It also discusses, on the assumption that a more proactive role is desirable, what monetary policy should react to and to what extent it should be combined with macroprudential regulation. There are robust arguments in favour of monetary policy reacting in a state‐contingent fashion to a measure at the private‐sector credit gap, not only because of financial stability considerations but also because of the high degree of uncertainty regarding real‐time estimates of the output gap in MICs. Nevertheless, monetary policy is not a substitute for macroprudential regulation; in particular, it cannot address the cross‐section dimension of systemic risk.

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How Effective are Capital Controls in Asia?

Cited by 11 publications

References 21 publications

Comparative assessment of macroprudential policies

Comparative assessment of macroprudential policies

Capital flow management policies in emerging market economies: Are they successful in mitigating drastic changes of capital flows?

Macroeconomic Stability, Financial Stability, and Monetary Policy Rules

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