Effectiveness of Capital Controls: Evidence from Thailand. Asian Development Review, Vol. 29(2), pp. 50-93
Jongwanich, Juthathip; Kohpaiboon, Archanun | August 2012
Abstract
This paper examines the effectiveness of capital account policies in Thailand
during the period 1993–2010. Our results show that policies toward capital
account liberalization tend to be more effective than those toward capital
account restriction in changing the volume of capital flows. The composition
of capital flows also matters for the effectiveness of policy measures. When
capital restrictions were introduced in the late 2000s, our results show that
there was a switching effect from more capital restricted asset classes toward
less restricted ones. This study also finds that the central bank did not gain
more monetary autonomy from introducing capital inflow restrictions.
However, such restrictions, both inflows and outflows (liability side), could
help limit the fluctuations in the nominal exchange rate, especially relative to
the US dollar in 2000–2010.
Citation
Jongwanich, Juthathip; Kohpaiboon, Archanun. 2012. Effectiveness of Capital Controls: Evidence from Thailand. Asian Development Review, Vol. 29(2), pp. 50-93. © Asian Development Bank. http://hdl.handle.net/11540/1639. License: CC BY 3.0 IGO.Citable URI
http://hdl.handle.net/11540/1639Metadata
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