International Economics Commons^™

Essays On The Economic Consequences Of Capital Controls, Richard J. Nugent Iii

Dissertations, Theses, and Capstone Projects

This dissertation consists of three chapters. In Chapter One, we review the literature on the economic consequences of capital controls. Capital controls are advocated as second-best policy in the presence of a pecuniary externality. Restricting capital inflows as a prudential tool during economic booms may distort the efficient allocation of capital but it invokes precautionary saving behavior so that agents do not overborrow. The financial crises that are fueled by capital market distortions can be mitigated by the use of prudential capital controls, heightened during the boom and released during the bust. The empirical evidence on capital controls has revealed …

Three Essays On Exchange Rate And Capital Controls, Yaorong Lou

Theses and Dissertations--Economics

This dissertation consists of essays that study exchange rate pass-through, China’s de facto exchange rate regime, and China’s capital controls.

The first essay studies exchange rate pass-through (ERPT) by using a set of data from ten countries including four advanced economies and six Asian emerging markets. The price indices used in this essay include consumer price, producer price, import price and export price indices. While most literature only include the import price index, this essay also puts emphasis on the export price index. It investigates the asymmetry in the ERPT between depreciation and appreciation of domestic currency by using a …