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1 septembre 2020
- handle: 10670/1.20um6y
Ce document est lié à :
10.22201/fe.01851667p.2020.313.76064
info:eu-repo/semantics/openAccess
Mots-clés
Capital controls (Tobin tax) foreign exchange intervention exchange rate return effectiveness GARCHSujets proches
Capital assets Fixed assetsCiter ce document
Hernán Rincón-Castro et al., « Are Capital Controls and Central Bank Intervention Effective? », Investigación económica, ID : 10670/1.20um6y
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Résumé
Intervention in the foreign exchange market and capital controls are two controversial policy options that many countries have adopted in order to influence the exchange rate and moderate capital flows. The objective of this paper is to examine their effectiveness for a representative Emerging Market economy. The main findings indicate that neither central bank intervention nor capital controls used separately were successful for depreciating the exchange rate but have the side effect of augmenting its volatility. Nonetheless, during a period when both policies were used simultaneously, they were effective to impact the exchange rate, without increasing its volatility.