Capital controls
Capital controls ineffective at handling policy trilemma, ECB paper finds
Emerging market capital controls have a limited impact on monetary policy trilemma variables and come with spillover effects, the authors warn
Iceland offers pension funds relief from capital controls
Pension funds will have access to a limited amount of foreign currency in an effort to smooth the transition as controls are lifted
Iceland’s Guðmundsson plans post-capital controls monetary redesign
‘Inflation targeting plus plus’ would help the small, open economy to pursue independent monetary policy, insulated from violent capital flows, the Icelandic governor tells Central Banking
Iceland launches plan to lift capital controls
Failed banks' estates must agree settlement with creditors within six months or face heavy one-off tax; either way this should pave way for controls to be lifted next year
China may have financial reforms backwards, economists argue
Interest rate liberalisation should take precedence over capital account opening, observers say at roundtable discussion in Hong Kong ahead of IFF China report release
IMF paper lays out new capital controls dataset
IMF working paper presents new dataset of capital control restrictions on both inflows and outflows of 10 categories of assets for 100 countries between 1995 and 2013
‘Severe’ risks around lifting capital controls, Icelandic report warns
Financial stability report highlights need for careful preparation before capital controls can be lifted; governor says most expected capital movements have been ‘well mapped out’
Iceland expects ‘significant’ progress in lifting capital controls this year
Healthy economy and sturdy banking system pave way for lifting of capital controls, but risks are 'tilted to the downside', IMF report says; central bank at a ‘difficult juncture’
Capital controls may do more harm than good: NBER paper
Working paper attempts to gauge the adverse effects of imposing capital controls, including segmented financial markets, more expensive capital, and reduced investment
IMF paper finds ‘puzzling' result from capital controls
Controls to stop capital inflows deflect them to other countries, the paper finds, but are rarely met with copycat measures in recipient countries
Choosing a suitable exchange rate suitable for price-takers
Flexible exchange rates can act as an asset price as well as a price for goods and services, so movements can distort the market for goods and services. Taxing capital inflows can address the matter
Banxico deputy says capital controls 'multilaterally detrimental'
Manuel Ramos-Francia says EMs that have implemented capital controls to stem capital flows have ‘deflected' them towards other economies, creating political tension
IMF calls on Iceland to defend central bank credibility
As the evaluation committee prepares to interview candidates for governor, IMF visit reminds Iceland of the need for a credible and independent central bank
Questions mount over Bank of Ghana's involvement in airlift of $3m football bonus
Experts say central bank must have been aware of $3m government operation that breached forex controls imposed by the bank in February
Capital controls and exposure to China help EMs weather taper storm
IMF working paper isolates determinants of taper impact on emerging markets; finds capital controls, macro-prudential policies, and exposure to China can mitigate harm
Iceland changes monetary policy framework as capital controls set to be lifted
The central bank's overhaul of key instruments in anticipation of balance sheet reduction and lifting of capital controls signals start of policy normalisation six years after crisis
Nigerian deputy governor moots tax on FDI dividends and capital transfers
Kingsley Moghalu laments emerging markets' ‘Faustian bargain' with short-term portfolio investors; moots explicit measures to stem capital outflows in wake of Fed taper
Argentina lifts capital controls as peso's slide continues
Argentina lifts capital controls a day after central bank quits trying to prop up the currency
Restrictions on capital outflows more effective when supported by strong fundamentals and institutions
IMF working paper finds tightening of restrictions fails to reduce net outflows when macroeconomic fundamentals, good institutions, or comprehensive existing restrictions are lacking
Global banks reduce frictions in international capital flows, say NY Fed staff
NY Fed staff report findings are consistent with research on reduced incidence of crises in local markets where banks have branches or subsidiaries; effects appear to be heterogeneous
IMF paper considers impact of China’s capital account liberalisation
Researchers suggest that reduced capital control will likely lead to net outflows from equity and bond markets as domestic investors look to diversify
Bank of Israel’s outgoing chief, Stanley Fischer, on the challenges of central banking
Stanley Fischer believes his work as governor of the Bank of Israel is done. He tells Chris Jeffery about the reform process in Israel as well as the challenges facing the world economy and the IMF
Bank of Thailand rate cut aims to boost demand, not weaken baht
BoT makes clear its move was driven by disappointing economic growth, and not aimed at weakening the currency as the government would like
Iceland’s Guðmundsson backs MAS-style stability model
Icelandic governor says managed float and strong supervision are important lessons to be taken from Singapore; says capital controls helped avoid a default in Iceland, but should not be used lightly