On the effectiveness of capital controls during the Great Recession: The Brazilian experience (2007–2013)

The domestic impacts and spillovers of capital controls

“…In more recent literature many improvements have been made in measuring capital controls. The most relevant novelty in those studies is gathering data on variation in institutional arrangements (Edison & Warnock, 2003;Eichengreen & Rose, 2014;Van der Laan et al, 2017). This new approach allows us to determine the type of policy action that is consistent with the time of the action.…”

Capital Account Policies in Emerging Asian Economies: Are They Effective in the 2000s?

“…Cardoso and Goldfajn (1998), examining the effectiveness of capital control policies in Brazil during 1988-1995 using a vector autoregression (VAR) model, showed these restrictions had only a temporary impact on changing the level and composition of capital flows, but led to no sustained impact in the long term. Van der Laan, Cunha, and Lélis (2017), using univariate structural models, examined the impact of Brazil's tax on external capital flows using monthly data over 2007-2017 and found it was effective in reducing capital inflows. You, Kim, and Ren (2014) examined the effectiveness of capital controls in fostering monetary independence using a panel dataset for 88 countries during 1995-2010.…”

“…A number of studies examine the effectiveness of capital account policies, but their findings are mixed and vary according to the countries and periods covered (see, for example, Van der Laan, Cunha, and Lélis 2017;You, Kim, and Ren 2014;Kim and Yang 2012;and Edwards 2007). Despite the mixed empirical evidence, capital account policies are still being used worldwide.…”