Arbeitspapier
Ineffective controls on capital inflows under sophisticated financial markets: Brazil in the nineties
We analyze the Brazilian experience in the 1990s to access the effectiveness of controls on capital inflows in restricting financial inflows and changing their composition towards long term flows. Econometric exercises (VARs) lead us to conclude that controls on capital inflows were effective in deterring financial inflows for only a brief period, from two to six months. The hypothesis to explain the ineffectiveness of the controls is that financial institutions performed several operations aimed at avoiding capital controls. We then conducted interviews with market players in order to provide several examples of the financial strategies that were used in this period to invest in the Brazilian fixed income market while bypassing capital controls. The main conclusion is that controls on capital inflows, while they may be desirable, are of very limited effectiveness under sophisticated financial markets. Therefore, policy-makers should avoid spending the scarce resources of bank supervision trying to implement them and focus more in improving economic policy.
- Sprache
-
Englisch
- Erschienen in
-
Series: Texto para discussão ; No. 516
- Klassifikation
-
Wirtschaft
Financial Markets and the Macroeconomy
Current Account Adjustment; Short-term Capital Movements
International Lending and Debt Problems
Financial Aspects of Economic Integration
International Financial Markets
- Thema
-
Kapitalverkehrskontrolle
Kapitalimport
Brasilien
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Carvalho, Bernardo S. de M.
Garcia, Márcio G. P.
- Ereignis
-
Veröffentlichung
- (wer)
-
Pontifícia Universidade Católica do Rio de Janeiro (PUC-Rio), Departamento de Economia
- (wo)
-
Rio de Janeiro
- (wann)
-
2006
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Carvalho, Bernardo S. de M.
- Garcia, Márcio G. P.
- Pontifícia Universidade Católica do Rio de Janeiro (PUC-Rio), Departamento de Economia
Entstanden
- 2006
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