Restrictions on capital outflows more effective when supported by strong fundamentals and institutions
A tightening of capital outflow restrictions is effective if it is supported by strong macroeconomic fundamentals or good institutions, or if existing restrictions are already fairly comprehensive, according to an IMF working paper.
Effectiveness of Capital Outflow Restrictions by Christian Saborowski, Sarah Sanya, Hans Weisfeld and Juan Yepez finds that when none of these three conditions is fulfilled, a tightening of restrictions fails to reduce net outflows as it provokes a sizeable decline
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