Capital account liberalization as a signal
By: Leonardo Bartolini, Allan Drazen.
Contributors: Drazen, Allan.; Federal Reserve Bank of New York.
Series: Staff reports ;; no. 11; Staff reports (Federal Reserve Bank of New York : Online) ;; no. 11.
Publisher: Federal Reserve Bank of New York
Published: 1996
Place of publication: [New York, N.Y.]
Language: eng
Format: Electronic resource
Subjects: Capital movements -- Econometric models.; Capital -- Econometric models.; Capital -- Accounting.; Monetary policy -- Econometric models.; Banks and banking, Central -- Econometric models.; Inflation (Finance) -- Econometric models.
Description: "This paper presents a model in which a government's current capital controls policy signals future policies.  Controls on capital outflows evolve in response to news on technology, contingent on government attitudes toward taxation of capital.  When there is uncertainty over government types, a policy of liberal capital outflows sends a positive signal that may trigger a capital inflow.  This prediction is consistent with the experience of several countries that have recently liberalized their capital accounts"--Federal Reserve Bank of New York web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.