Capital Controls During Financial Crises: The Case of Malaysia and Thailand

38 Pages Posted: 23 Oct 2000

See all articles by Hali J. Edison

Hali J. Edison

International Monetary Fund (IMF) - Research Department

Carmen M. Reinhart

Peter G. Peterson Institute for International Economics; National Bureau of Economic Research (NBER)

Date Written: March 2000

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

JEL Classification: F21, F32

Suggested Citation

Edison, Hali J. and Reinhart, Carmen M., Capital Controls During Financial Crises: The Case of Malaysia and Thailand (March 2000). International Finance Working Paper No. 662. Available at SSRN: https://ssrn.com/abstract=231951 or http://dx.doi.org/10.2139/ssrn.231951

Hali J. Edison (Contact Author)

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-6946 (Phone)
202-589-6946 (Fax)

Carmen M. Reinhart

Peter G. Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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