Capital Controls or Macroprudential Regulation? »
Journal Issue
Volume/Issue: 2015/218
Series: IMF Working Papers
Author(s): Anton Korinek , and Damiano Sandri
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 October 2015
DOI: http://dx.doi.org/10.5089/9781513506463.001
ISBN: 9781513506463
Keywords: pecuniary externalities, macroprudential regulation, inequality, exchange rate, exchange, lenders, borrowers, markets, International Lending and Debt Problems, Open Economy Macroeconomics
International capital flows can create significant financial instability in emerging economies because of pecuniary externalities associated with exchange rate movements. Does this make it optimal to impose capital...