China's capital controls: Through the prism of covered interest differentials

Arbeitspapier

We study the renminbi (RMB) covered interest differential - an indicator of the effectiveness of capital controls. It is found that the differential is not shrinking over time and, in fact, appears larger after the global financial crisis than before. That is, capital controls in China are still substantial and effective. In addition to exchange rate changes and volatilities, the RMB covered interest differential is affected by credit market tightness indicators. The marginal explanatory power of these macroeconomic factors, however, is small relative to the autoregressive component and the dummy variables that capture changes in China's policy.

Angaben zum Objekt

• ISBN: 978-952-6699-32-5
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: BOFIT Discussion Papers ; No. 22/2013

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Financial Markets and the Macroeconomy ; Foreign Exchange ; Current Account Adjustment; Short-term Capital Movements
• Thema: NDF implied RMB interest rate ; capital controls ; asymmetric response ; macro determinants ; credit market tightness

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Cheung, Yin-Wong ; Herrala, Risto
• Ereignis: Veröffentlichung
• (wer): Bank of Finland, Institute for Economies in Transition (BOFIT)
• (wo): Helsinki
• (wann): 2013

Weitere Informationen

• Handle: http://hdl.handle.net/10419/212777
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ