fbpx Capital Account Policies in Emerging Asian Economies: Are They Effective in the 2000s? | Asian Development Bank

Capital Account Policies in Emerging Asian Economies: Are They Effective in the 2000s?

Publication | April 2019
Capital Account Policies in Emerging Asian Economies: Are They Effective in the 2000s?

This paper examines the effectiveness of capital account policies for 10 emerging Asian economies from 2000 to 2015.

The results show that some types of capital controls are effective for reducing the volume of capital flows and pressure on real exchange rates. The choice of exchange rate regime matters for the effectiveness of capital controls in fostering monetary policy independence. The study shows that strong economic fundamentals are more important than capital account policy for changing the composition of capital inflows toward more stable and long-term flows.

Contents 

  • Introduction
  • Literature Review
  • Capital Inflows and the Capital Control Index in Emerging Asia
  • Methodology and Economic Procedure
  • Results
  • Conclusions and Policy Implications