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- handle: 10670/1.zxnfej
- halshs: halshs-04409575
- doi: 10.1016/j.jimonfin.2023.102906
- WOS: 001077098300001
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info:eu-repo/semantics/altIdentifier/doi/10.1016/j.jimonfin.2023.102906
Mots-clés
Capital controls Foreign exchange interventions Foreign exchange reserves Global financial cycle F - International Economics/F.F3 - International Finance/F.F3.F31 - Foreign Exchange F - International Economics/F.F3 - International Finance/F.F3.F32 - Current Account Adjustment • Short-Term Capital Movements F - International Economics/F.F3 - International Finance/F.F3.F38 - International Financial Policy: Financial Transactions Tax; Capital ControlsSujets proches
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Rafael Cezar et al., « Capital controls and foreign reserves against external shocks: Combined or alone? », HAL-SHS : économie et finance, ID : 10.1016/j.jimonfin.2023.102906
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Résumé
Long considered suboptimal, capital controls and FX interventions are now recognized as prudential measures. Yet, whether they are used in combination remains an open question. Thanks to a rich dataset from 1950, we investigate how the response of FX reserves to an exogenous US monetary shock depends on capital controls. The response is insignificant with a very close capital account. By contrast, for a significant number of countries, FX reserves and capital controls are combined to tame the effects of an international financial shock. Yet, as countries open up financially, FX reserves replace capital controls. There is no one-sizes-fits-all recipe.