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Friday, July 17, 2020 | History

4 edition of Capital controls, exchange rate volatility and external vulnerability found in the catalog.

Capital controls, exchange rate volatility and external vulnerability

Sebastian Edwards

Capital controls, exchange rate volatility and external vulnerability

by Sebastian Edwards

  • 330 Want to read
  • 30 Currently reading

Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

    Places:
  • Chile,
  • Chile.
    • Subjects:
    • Capital movements -- Chile.,
    • Foreign exchange -- Chile.,
    • Chile -- Economic policy.

    • Edition Notes

      StatementSebastian Edwards, Roberto Rigobon.
      SeriesNBER working paper series ;, working paper 11434, Working paper series (National Bureau of Economic Research : Online) ;, working paper no. 11434.
      ContributionsRigobón, Roberto., National Bureau of Economic Research.
      Classifications
      LC ClassificationsHB1
      The Physical Object
      FormatElectronic resource
      ID Numbers
      Open LibraryOL3478374M
      LC Control Number2005618388

      CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): We use high frequency data and a new econometric approach to evaluate the effectiveness of controls on capital inflows. We focus on Chile’s experience during the s, and investigate whether controls on capital inflows reduced Chile’s vulnerability to external shocks. the capital controls on the pass-through of external disturbances to domestic interest rates in those economies. We conclude that there is evidence that the capital controls allowed for greater policy autonomy. JEL Classification: E60, F33, F34, O16, O Keywords: Capital Flows, Capital Controls, Developing Countries.

      external shocks are related to procyclical swings in capital flows and financial integration increases domestic market developments and institutions has to be reached before the vulnerability to external policy to respond to excessive exchange rate volatility (see Velarde’s paper). Cifuentes and. Capital Controls, Exchange Rate Volatility and External Vulnerability NBER Working Papers, National Bureau of Economic Research, Inc View citations (22) Capital Controls, Sudden Stops and Current Account Reversals NBER Working Papers, National Bureau of Economic Research, Inc View citations (83) See also Chapter ().

        Although capital flows to developing and emerging market countries bring substantial benefits (see Dell’Ariccia and others, ), sudden surges can complicate macroeconomic management and create financial the macroeconomic front, the concern is that a temporary surge will lead to an appreciation of the exchange rate and undermine Cited by: Some scholars argue that the free movement of capital across borders enhances welfare; others claim it represents a clear peril, especially for emerging nations. In Capital Controls and Capital Flows in Emerging Economies, an esteemed group of contributors examines both the advantages and the pitfalls of restricting capital mobility in these emerging the aftermath of the .


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Capital controls, exchange rate volatility and external vulnerability by Sebastian Edwards Download PDF EPUB FB2

Capital Controls, Exchange Rate Volatility and External Vulnerability Sebastian Edwards, Roberto Rigobon.

NBER Working Paper No. Issued in June NBER Program(s):International Finance and Macroeconomics We use high frequency data and a new econometric methodology to evaluate the effectiveness of controls on capital inflows. rate volatility is the result of the controls, or of the fact th at the observed exchange rate is close to one of the bands.

This implies a pr oblem of identification from the monetary. Get this from a library. Capital controls, exchange rate volatility and external vulnerability. [Sebastian Edwards; Roberto Rigobón; National Bureau of Economic Research.].

Get this from a library. Capital controls, exchange rate volatility and external vulnerability. [Sebastian Edwards; Roberto Rigobón; National Bureau of Economic Research.] -- "We use high frequency data and a new econometric methodology to evaluate the effectiveness of controls on capital inflows.

We focus on Chile's experience during the s and investigate whether. Capital controls on inflows, exchange rate volatility and external vulnerability Sebastian Edwardsa, Roberto Rigobonb,⁎ a University of California, Los Angeles, National Bureau of Economic Research, USA b Massachusetts Institute of Technology, National Bureau of Economic Research, USA article info abstract Article history: Received 2 May (b) We find that the "vulnerability" of the nominal exchange rate to external factors decreases with a tightening of the capital controls.

And (c), we find that a tightening of capital controls increases the unconditional volatility of the exchange rate, exchange rate volatility and external vulnerability book makes this volatility less sensitive to external shocks.

The main findings may be summarized as follows: (a) a tightening of capital controls on inflows depreciates the exchange rate and (b), we find that a tightening of capital controls increases the unconditional volatility of the exchange rate, but makes it less sensitive to external by: (b) We find that the "vulnerability" of the nominal exchange rate to external factors decreases with a tightening of the capital controls.

And (c), we find that a tightening of capital controls increases the unconditional volatility of the exchange rate, but makes this volatility less sensitive to external : Sebastian Edwards and Roberto Rigobon.

External vulnerability and capital controls. After the shadow exchange rate has been computed, the second step is to estimate a GARCH model to evaluate the importance (and role) of capital controls in the propagation of external shocks. As mentioned earlier, we measure the degree of capital control tightness by the tax equivalent by: BibTeX @MISC{Edwards05givento, author = {Sebastian Edwards and Roberto Rigobon and Sebastian Edwards and Roberto Rigobon and Jel No.

F and Sebastian Edwards}, title = {given to the source. Capital Controls, Exchange Rate Volatility and External Vulnerability}, year =. the exchange rate. (b) We find that the "vulnerability" of the nominal exchange rate to external factors decreases with a tightening of the capital controls.

And (c), we find that a tightening of capital controls increases the unconditional volatility of the exchange rate, but makes this volatility less sensitive to external shocks.

Sebastian. Capital Controls on Inflows, Exchange Rate Volatility and External Vulnerability Article in Journal of International Economics 78(2) July. 4 S Edwards and R Rigobón, “Capital controls on inflows, exchange rate volatility and external vulnerability”, Journal of International Economics, no 2,pp – 5 Another important topic that was absent from our discussions has.

of the capital controls and macroprudential measures on a series of outcome variables. We estimate the cumulative effects for each week over a six-month window on variables that are frequently cited as goals for adjusting CFMs: the exchange rate, portfolio flows, other macroeconomic variables (interest-rate.

Capital Control, Speculation and Exchange Rate Volatility Mei-Lie Chu Department of Economics National Chengchi University TaipeiTaiwan Abstract This paper studies a plausible connection among rational speculators, exchange rate volatility and capital controls.

When Krugman () asserted that there should. Capital controls on inflows, exchange rate volatility and external vulnerability We use high frequency data and a new econometric approach to evaluate the effectiveness of controls on capital inflows. Does Capital Control Policy Affect Real Exchange Rate Volatility.

A Novel Approach Using Propensity Score Matching ABSTRACT Propensity score matching is a statistical technique recently introduced in the field of economics, which researchers use to assess the treatment effect of policy initiatives. In this. The main findings may be summarized as follows: (a) a tightening of capital controls on inflows depreciates the exchange rate and (b), we find that a tightening of capital controls increases the unconditional volatility of the exchange rate, but makes it less sensitive to external l controls Capital mobility Capital inflows Author: Sebastian Edwards and Roberto Rigobon.

PART IV EFFECTIVENESS OF CAPITAL CONTROLS AS A SHORT-RUN POLICY TOOL Sebastian Edwards and Roberto Rigobon (), ‘Capital Controls on Inflows, Exchange Rate Volatility and External Vulnerability’, Journal of International Economics, 78 (2), July, –67 In this study, panel vector autoregression (PVAR) models are employed to examine the relationships between industrial production growth rate, consumer price inflation, short-term interest rates, stock returns and exchange rate volatility.

More specifically, I explored the consequences of the dynamics detected by the models on monetary policy implementation for Author: Oguzhan Ozcelebi. Edwards, S. and Rigbon, R. (). Capital Controls, Exchange Rate Volatility and External Vulnerability.

NBER Working PaperNational Bureau of Economic Research. Elbadawi, I.A. and Soto, R. (). Capital Flows and Long-Term Equilibrium Exchange Rates in Chile. Policy Research Working Paper, The Word Size: KB.

Foreign Exchange Volatility and its Implications for Macroeconomic Stability: An Empirical Study of Developing Economies (). Capital controls on inflows, exchange rate volatility and external vulnerability.

Journal of International Economics, 78 Foreign Exchange Volatility and its Implications for Macroeconomic Stability: An Cited by: 2.relationship between exchange rate volatility and trade flows.

The presumption that trade is adversely affected by exchange rate volatility depends on a number of specific assumptions and does not necessarily hold in all cases, especially in a general equilibrium setting where other variables change along with exchange Size: 2MB.