Do Macroeconomic Effects of Capital Controls Vary by Their Type? Evidence from Malaysia

Author/creator Tamirisa, Natalia T. Author
Format Electronic
Publication InfoWashington : International Monetary Fund
Description61 p.
Supplemental ContentFull text available from Ebook Central - Academic Complete

Summary Annotation This paper examines how the macroeconomic effects of capital controls vary depending on which type of international financial transaction they cover. Drawing on Malaysia's experiences in regulating the capital account during the 1990s, it finds, in an error-correction model, that capital controls generally have statistically insignificant effects on the exchange rate. Controls on portfolio outflows and on bank and foreign exchange operations facilitate reductions in the domestic interest rate, while controls on portfolio inflows have the opposite effect, in line with the theoretical priors. Controls on international transactions in the domestic currency and stock market operations have statistically insignificant effects on the interest rate differential.
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Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
ISBN9781451841930
ISBN1451841930 (Trade Paper) Active Record
Stock number00013468

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