Series: IMF Working Papers
Author(s): Enrique Mendoza
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 November 1990
Keywords: capital controls, capital stock, probability distribution, domestic capital, standard deviation
A dynamic stochastic equilibrium model of a small open economy is used to quantify the macroeconomic effects of introducing capital controls to stabilize the balance of trade. This model focuses on the role of inte...