@techreport{NBERw2625,
 title = "Self-fulfillment Expectations, Speculation Attacks, and Capitol Controls",
 author = "Harris Dellas and Alan C. Stockman",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "2625",
 year = "1988",
 month = "June",
 URL = "http://www.nber.org/papers/w2625",
 abstract = {This paper examines the endogenous implementation of capital controls in the context of a fixed exchange rate regime. It is shown that if there exists a non-zero probability that the policymaker's response to a speculative attack on official foreign reserves will be the introduction of controls, such an attack may occur even when current and expected monetary policy is consistent with a permanently viable, control-free fixed exchange rate regime. Consequently, capital controls may be the outcome of self- fulfilling expectations rather than the result of imprudent economic policies.},
}