TY  - JOUR
AU  - Reinhart,Carmen M.
AU  - Smith,R. Todd
TI  - Temporary Controls on Capital Inflows
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8422
PY  - 2001
Y2  - August 2001
UR  - http://www.nber.org/papers/w8422
L1  - http://www.nber.org/papers/w8422.pdf
N1  - Author contact info:
Carmen M. Reinhart
Peterson Institute for International Economics
1750 Massachusetts Avenue, NW
Washington, DC 20036-1903
Tel: 202-454-1325
Fax: 202-659-3225
E-Mail: creinhart@piie.com
AB  - During the past decade a number of countries imposed capital controls that had two distinguishing features: they were asymmetric, in that they were designed principally to discourage capital inflows, and they were temporary. This paper studies formally the consequences of these policies, calibrates their potential effectiveness, and assesses their welfare implications in an environment in which the level of capital inflows can be sub-optimal. In addition, motivated by the fact that these types of controls have often been left in place after the dissipation of the shock that lead to the controls being implemented, the paper evaluates the welfare cost of procrastination in removing these types of controls.
ER  -