and Thailand"
BY: HALI J. EDISON
Board of Governors of the Federal Reserve System
Division of International Finance
CARMEN M. REINHART
University of Maryland
School of Public Policy
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Paper ID: International Finance Working Paper No. 662
Date: March 2000
Contact: HALI J. EDISON
Email: Mailto:hali.edison at frb.gov
Postal: Board of Governors of the Federal Reserve System
Division of International Finance
Washington, DC 20551 USA
Phone: 202-452-3540
Fax: 202-736-5638
Co-Auth: CARMEN M. REINHART
Email: Mailto:reinhart at econ.umd.edu
Postal: University of Maryland
School of Public Policy
College Park, MD 20742-1815 USA
Paper Requests:
Please indicate title and IFDP number. Contact International
Finance Discussion Papers, Division of International Finance,
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ABSTRACT:
This study examines the impact capital controls had in Malaysia
(1998-1999) and Thailand (1997). We aim to assess the extent to
which the capital controls were effective in delivering the
outcomes that motivated their imposition. We conclude that in
Thailand the controls did not deliver much of what was intended
- although, one does not observe the counterfactual. By
contrast, in the case of Malaysia the controls did align closely
with the priors of what controls are intended to achieve:
greater interest rate and exchange rate stability and more
policy autonomy.
Keywords: capital controls, capital flows, financial crises,
asian currency crisis, cross-border volatility