Resources on Capital Controls

Resources for our 2019 JEL Paper on Capital Controls:
  • Capital Controls: Theory and Evidence [PDF], with Bilge Erten and José Antonio Ocampo, forthcoming, Journal of Economic Literature, Nov 2019.
               Surveys the literature on capital controls using a teachable model and an in-depth review of the empirical literature

  • Presentation Slides, Version 0.9 [PDF] - final version coming soon

  • Practice Problems [PDF]
               Instructors only: feel free to contact me about solutions

See also some of my additional writings on capital controls and externalities:
  • Regulating Capital Flows to Emerging Markets: An Externality View [PDF | Appendix | Video], Journal of International Economics 111, pp. 61-80, Mar 2018.
    Foundations for risk-based prudential capital controls to reduce the risk of financial crises in emerging economies

    Pecuniary Externalities in Economies with Financial Frictions [Publication | PDF WP | Appendix | Slides], with Eduardo DávilaReview of Economic Studies 85(1), pp. 352–395, Jan. 2018.
    Develops a general methodology to categorize & characterize pecuniary externalities from both imperfect risk-sharing and collateral constraints

    Capital Controls or Macroprudential Regulation? [Publication | PDF WP | IMF WP], with Damiano SandriJournal of International Economics 99(S1),  pp. 27-42, Mar. 2016.
    Both instruments are needed in emerging economies that are at risk of financial instability because of large capital inflows

    From Sudden Stops to Fisherian Deflation: Quantitative Theory and Policy [Publication | PDF WP | Data and Matlab codes], with Enrique Mendoza, Annual Review of Economics 6, pp. 299-332, Aug. 2014.
    Provides an introduction to quantitative models and the empirics of sudden stops, with additional online resources

    The New Economics of Prudential Capital Controls [PDF WP | Publication | Kindle], IMF Economic Review 59(3), pp. 523-561, August 2011. Also IMF Working Paper 11/298..
    An introduction to the literature on prudential capital controls in emerging economies that started to develop at the time, cited in the FT's Economists' Forum and the Economist's Free Exchange

    Hot Money and Serial Financial Crises [PDF WP | Publication | Slides], IMF Economic Review 59(2), pp. 306-339, June 2011. 
    Crises in one area of the world economy cause "hot money" to flow into other areas and create the risk of serial financial crises

    Excessive Volatility in Capital Flows: A Pigouvian Taxation Approach [WP | Publication | Online App], with Olivier Jeanne, American Economic Review 100(2), pp. 403-407, May 2010.
    Provides a simple three-period model of financial amplification and pecuniary externalities based on asset price feedback effects

Anton Korinek,
Nov 25, 2019, 7:43 PM