TY  - JOUR
AU  - Kaplan,Ethan
AU  - Rodrik,Dani
TI  - Did the Malaysian Capital Controls Work?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8142
PY  - 2001
Y2  - February 2001
UR  - http://www.nber.org/papers/w8142
L1  - http://www.nber.org/papers/w8142.pdf
N1  - Author contact info:
Ethan Kaplan
Stockholm University
IIES
Stockholm, SWEDEN
E-Mail: ekaplan@iies.su.se

Dani Rodrik
John F. Kennedy School of Government
Harvard University
79 JFK Street
Cambridge, MA 02138
Tel: 617/495-9454
Fax: 617/496-5747
E-Mail: dani_rodrik@harvard.edu
M1  - published as Ethan Kaplan, Dani Rodrik. "Did the Malaysian Capital Controls Work?," in Sebastian Edwards and Jeffrey A. Frankel, editors, "Preventing Currency Crises in Emerging Markets" University of Chicago Press (2002)

AB  - Malaysia recovered from the Asian financial crisis swiftly after the imposition of capital controls in September 1998. The fact that Korea and Thailand recovered in parallel has been interpreted as suggesting that capital controls did not play a significant role in facilitating Malaysia's rebound. However, the financial crisis was deepening in Malaysia in the summer of 1998, while it had significantly eased up in Korea and Thailand. We employ a time-shifted differences-in- differences technique to exploit the differences in the timing of the crises. Compared to IMF programs, we find that the Malaysian policies produced faster economic recovery, smaller declines in employment and real wages, and more rapid turnaround in the stock market.
ER  -