NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by Roland Straub

Contact and additional information for this authorAll publicationsWorking Papers only

Working Papers and Chapters

May 2012Bubble Thy Neighbor: Portfolio Effects and Externalities from Capital Controls
with Kristin Forbes, Marcel Fratzscher, Thomas Kostka: w18052
We use changes in Brazil’s tax on capital inflows from 2006 to 2011 to test for direct portfolio effects and externalities from capital controls on investor portfolios. The analysis is structured based on information from investor interviews. We find that an increase in Brazil’s tax on foreign investment in bonds causes investors to significantly decrease their portfolio allocations to Brazil in both bonds and equities. Investors simultaneously increase allocations to other countries that have substantial exposure to China and decrease allocations to countries viewed as more likely to use capital controls. Much of the effect of capital controls on portfolio flows appears to occur through signalling —i.e. changes in investor expectations about future policies— rather than the direct cost of...
June 2007International Transmission and Monetary Policy Cooperation
with Günter Coenen, Giovanni Lombardo, Frank Smets
in International Dimensions of Monetary Policy , Jordi Gali and Mark J. Gertler, editors

Contact and additional information for this authorAll publicationsWorking Papers only

 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us