TY  - JOUR
AU  - Park,Daekuen
AU  - Sachs,Jeffrey
TI  - Capital Controls and the Timing of Exchange Regime Collapse
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2250
PY  - 1987
Y2  - May 1987
UR  - http://www.nber.org/papers/w2250
L1  - http://www.nber.org/papers/w2250.pdf
N1  - Author contact info:
Jeffrey D. Sachs
The Earth Institute at Columbia University
314 Low Library
535 West 116th Street, MC 4327
New York, NY  10027
Tel: 212/854-8704
Fax: 212/854-8702
E-Mail: sachs@columbia.edu
AB  - This paper investigates the nature of balance of payments crises in regimes with capital controls. It extends earlier work on capital controls by assuming that households manage their consumption and asset portfolios to maximize intertemporal utility. Our main result is that capital controls are effective in delaying, but not preventing, a breakdown of a fixed exchange rate regime in the presence of money-financed fiscal deficits.
ER  -