Capital Controls Checkup: Cases, Customs, Consequences

34 Pages Posted: 1 Sep 2020

See all articles by Stefan Goldbach

Stefan Goldbach

Deutsche Bundesbank

Volker Nitsch

Technical University of Darmstadt

Date Written: 2020


This paper examines the effect of administrative restrictions on cross-border capital transactions. Using highly disaggregated data from the German balance of payments statistics for the period from 1999 through 2017, we document several stylized facts about the effectiveness of such capital control policies introduced by other countries. Capital controls are associated with economically and statistically significant declines in capital flows; they affect bilateral financial relationships along both the extensive and the intensive margin. Capital controls have also been effective in reducing capital flows within the European Union.

Keywords: restriction, capital flow, transaction

JEL Classification: F32, F36, F38

Suggested Citation

Goldbach, Stefan and Nitsch, Volker, Capital Controls Checkup: Cases, Customs, Consequences (2020). Deutsche Bundesbank Discussion Paper No. 47/2020, Available at SSRN: or

Stefan Goldbach (Contact Author)

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431

Volker Nitsch

Technical University of Darmstadt ( email )

Universitaets- und Landesbibliothek Darmstadt
Magdalenenstrasse 8
Darmstadt, Hesse D-64289

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