Crises and capital controls in small open economies: a stock–flow consistent approach

Artikel

This paper attempts to explain the role of capital inflows in creating economic booms and busts in a small open economy with sovereign currency. We develop a stock–flow consistent (SFC) model for a small open economy while relying on the experience of the Icelandic crisis. We demonstrate the destabilising effects of capital inflows on the economy by allowing for a sudden stop, and also discuss the role of capital controls as a policy response in the event of a crisis due to sudden stops. Finally, we discuss the policy implications of our results in order to tackle the destabilising effects associated with financial flows in a small economy.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: European Journal of Economics and Economic Policies: Intervention (EJEEP) ; ISSN: 2052-7772 ; Volume: 16 ; Year: 2019 ; Issue: 1 ; Pages: 94-133

Klassifikation und Themen

• Klassifikation: Wirtschaft ; General Aggregative Models: Keynes; Keynesian; Post-Keynesian ; Current Account Adjustment; Short-term Capital Movements ; International Financial Policy: Financial Transactions Tax; Capital Controls ; Open Economy Macroeconomics
• Thema: post-Keynesian ; stock–flow consistent ; monetary policy ; capital controls ; sudden stops ; financial crisis

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Raza, Hamid ; Gudmundsson, Bjorn Runar ; Zoega, Gylfi ; Byrialsen, Mikael Randrup
• Ereignis: Veröffentlichung
• (wer): Edward Elgar Publishing
• (wo): Cheltenham
• (wann): 2019

Weitere Informationen

• DOI: doi:10.4337/ejeep.2019.0042
• Handle: http://hdl.handle.net/10419/277438
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ