5 December 2013
Are Capital Controls Imposed During Booms?
Andrés Fernández, Alessandro Rebucci, and Martín Uribe study the imposition of capital controls by a large number of countries during the 1995-2011 period. They find that movements in capital controls are largely unaffected by boom-bust cycles in national output, by real exchange rate fluctuations, and by movements in the current account. In particular, it does not appear that firms impose capital controls during economic booms.
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