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Capital Controls (capital + control)
Selected AbstractsCAPITAL CONTROLS AS A MEANS OF MINIMISING SPECULATIVE BUBBLES IN REAL EXCHANGE RATES: KEY FEATURES OF THE LITERATURE AND ITS APPLICATION TO CHINA AND INDIAECONOMIC PAPERS: A JOURNAL OF APPLIED ECONOMICS AND POLICY, Issue 3 2003CRAIG APPLEGATE First page of article [source] Why Do Banks Go Abroad?,Evidence from German DataFINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 1 2000Claudia M. Buch This paper provides empirical evidence on the determinants of foreign activities of German banks. We use regionally disaggregated panel data for the years 1981,98 and distinguish foreign direct investment from total foreign assets of domestic banks, of their foreign branches and of their subsidiaries. Foreign activities are found to be positively related to demand conditions on the local market, foreign activities of German firms, and the presence of financial centers. This supports the hypothesis that German banks follow their customers abroad. Exchange rate volatility has some negative impact. EU membership and the abolition of capital controls seem to have exerted a greater influence on foreign assets than on FDI of German banks, thus weakly supporting the hypothesis that the two are substitutes. [source] How to exit from fixed exchange rate regimes?INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 3 2008Ahmet Atil A Abstract This paper improves upon the recently developed literature on exits from fixed exchange rate regimes in three ways: (1) It allows for two indicators for post-exit macroeconomic conditions, the change in the exchange rate and the change in the output gap; (2) it tests whether the distinction between orderly and disorderly exit is statistically justified, and concludes that it is not; (3) it deals with the sample selection problem. The results, subject to extensive sensitivity analysis, suggest that post-exits are better when depegging occurs in good macroeconomic conditions , an unnatural move for most policymakers , when world interest rates decline and in the presence of capital controls. Importantly, ,good' macroeconomic policies do not seem to help with post-exit performance. Copyright © 2007 John Wiley & Sons, Ltd. [source] Dimensions of financial integration in Greater China: money markets, banks and policy effectsINTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 2 2005Yin-Wong Cheung Abstract The financial linkages between the People's Republic of China (hereafter ,China') and the other Greater China economies of Hong Kong and Taiwan are assessed, and compared against those of China with Singapore, Japan and the United States. For both sets of links, there is evidence that ex post uncovered interest parity tends to hold over longer periods, and the magnitude of the parity deviations is shrinking over time. The deviations depend upon the extent of capital controls, and in certain cases, exchange rate volatility. However, while the money markets of China are increasingly linked to money markets in the rest of the world, our empirical results suggest that the banking sector,the main source of capital for Chinese firms,remains insulated. Copyright © 2005 John Wiley & Sons, Ltd. [source] The revived Bretton Woods systemINTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 4 2004Michael P. Dooley Abstract The economic emergence of a fixed exchange rate periphery in Asia has re-established the United States as the centre country in the Bretton Woods international monetary system. We argue that the normal evolution of the international monetary system involves the emergence of a periphery for which the development strategy is export-led growth supported by undervalued exchange rates, capital controls and official capital outflows in the form of accumulation of reserve asset claims on the centre country. The success of this strategy in fostering economic growth allows the periphery to graduate to the centre. Financial liberalization, in turn, requires floating exchange rates among the centre countries. But there is a line of countries waiting to follow the Europe of the 1950s/60s and Asia today, sufficient to keep the system intact for the foreseeable future. Copyright © 2004 John Wiley & Sons, Ltd. [source] Capital mobility and inflation persistence: theory and evidence from GreeceINTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 2 2004Costas Karfakis Abstract This paper examines the relationship between the openness of the capital account and inflation persistence. In the theoretical part we find that in a fixed (floating) exchange rate regime inflation persistence is negatively (positively) associated with the intensity of capital controls. In the empirical part of the paper we analyse the dynamics of the inflation rate in Greece by associating inflation persistence with the capital account openness and we find evidence in favour of a positive relationship. Copyright © 2004 John Wiley & Sons, Ltd. [source] Microeconomic effects of capital controls: The chilean experience during the 1990sINTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 3 2003Francisco A. Gallego Abstract This paper provides empirical evidence on some of the microeconomic effects of the capital controls introduced in Chile during the 1990s, in particular, the unremunerated reserve requirement (URR). By looking at financial statements for a group of 73 Chilean firms during 1986,2001, the paper attempts to identify the effects of the URR on the firms' costs and ways of financing. Results show that the effects of the URR are firm specific; for instance, there are striking differences in the response to the URR among firms of different size and those with or without access to international capital markets. Copyright © 2003 John Wiley & Sons, Ltd. [source] Black and official exchange rate volatility and foreign exchange controls: evidence from GreeceINTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 1 2001Angelos Kanas F31; F32; C22; C52 Abstract This paper examines the issue of volatility and capital controls to the official and black market exchange rates of the Greek Drachma using the monthly exchange rate against the US dollar for the period 1975,1993. Specifically, we apply a GARCH(1,,1) model to study the behaviour of the official and black market drachma/dollar exhange rate. The main findings of the analysis are: (i) in contrast to the findings of previous studies using monthly rates, GARCH processes characterize the drachma/dollar exchange rate series in both markets; (ii) the relaxation of foreign exchange controls increased the volatility of the exchange rate in the official market as implied by theory; (iii) the persistence of volatility is reduced when account is taken of the liberalization process of capital movements; and (iv) The forecasts of volatility are improved when the GARCH forecasts are used against traditional measures. Copyright © 2001 John Wiley & Sons, Ltd. [source] Testing and Measuring the Role of Ideas: The Case of Neoliberalism in the International Monetary FundINTERNATIONAL STUDIES QUARTERLY, Issue 1 2007JEFFREY M. CHWIEROTH How much weight should be assigned to a particular factor in explaining an outcome? How should an abstract concept be linked to empirical indicants? These methodological problems,known as the "how much" and "how to" problems, respectively,have raised serious obstacles for ideational researchers. However, they have generally failed to deal with these problems adequately. To offset the limitations of existing studies, this paper provides new methodological guidance to researchers confronting these problems. In particular, quantitative methods are suggested for managing the "how much" problem, and a new indicator based on an individual's organizational background is proposed to deal with the "how to" problem. To develop the argument, this guidance is applied to examine the effect and measurement of the emergence within the International Monetary Fund of neoliberal ideas prescribing liberalization of capital controls. [source] Attacking Poverty and the ,post-Washington consensus'JOURNAL OF INTERNATIONAL DEVELOPMENT, Issue 3 2001Paul Mosley Has the increasingly pro-poor stance of the World Bank, as manifested in particular in its most recent World Development Report (WDR), caused it to abandon its traditionally free-market attitudes ? The answer is ,yes and no'. The pursuit of ,security' espoused by the WDR has forced the Bank to acknowledge widespread market failure in the provision of security, both social and financial; and this has caused the Bank to espouse some measures very inconsistent with the Washington consensus, such as international capital controls. On the other hand, the old agenda of rolling back the frontiers of the state remains, and is given a new twist in WDR 2000 by the revelation that the ,voices of the poor' are arrayed against bureaucratic abuses. Debate within the Bank has become much more open and transparent, and this has exposed long-persisting internal differences about what markets still need to be liberalized in what environments. Copyright © 2001 John Wiley & Sons, Ltd. [source] What Determines the Domestic Bias and Foreign Bias?THE JOURNAL OF FINANCE, Issue 3 2005Evidence from Mutual Fund Equity Allocations Worldwide ABSTRACT We examine how mutual funds from 26 developed and developing countries allocate their investment between domestic and foreign equity markets and what factors determine their asset allocations worldwide. We find robust evidence that these funds, in aggregate, allocate a disproportionately larger fraction of investment to domestic stocks. Results indicate that the stock market development and familiarity variables have significant, but asymmetric, effects on the domestic bias (domestic investors overweighting the local markets) and foreign bias (foreign investors under or overweighting the overseas markets), and that economic development, capital controls, and withholding tax variables have significant effects only on the foreign bias. [source] Risk Sensitivity of Bank Stocks in Malaysia: Empirical Evidence Across the Asian Financial CrisisASIAN ECONOMIC JOURNAL, Issue 3 2004Chee Wooi Hooy The present study examines the sensitivity of commercial banks' stock excess returns to their volatility and financial risk factors, measured by interest rates and exchange rates, across the recent Asian financial crisis. In general, we found that there were no significant differences among Malaysian commercial banks in their risk exposure prior to and during the Asian financial crisis. The introduction of selective capital controls, a fixed exchange rate regime and a forced banking consolidation program, however, had increased the risk exposure of both large and small domestic banks. The effects of these risk factors were significantly detected in both large and small banks. [source] Crisis and Recovery in Malaysia: the role of capital controlsASIAN-PACIFIC ECONOMIC LITERATURE, Issue 1 2002K.S. Jomo No abstract is available for this article. [source] Effectiveness of China's Monetary Policy and Reform of Its Foreign Exchange SystemCHINA AND WORLD ECONOMY, Issue 5 2006Xinhua Gu E58; F31; F41 Abstract This paper examines the effectiveness of China's monetary policy in curbing the overheating and speculation problems under the current foreign exchange system. The paper stresses the necessity of capital controls in China's gradual foreign exchange reform and the importance of credible government policy in guiding market expectations. Also, the paper discusses the persistence of China's external imbalance, and provides policy recommendations for its reduction. (Edited by Zhinan Zhang) [source] | |||||||||||||||||||||||||