Series: IMF Working Papers
Author(s): Christiane Nickel , Günter Schmidt , Georg Stadtmann , and Michael Frenkel
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 November 2001
Keywords: exchange rate, capital control, capital inflows, foreign exchange, Open Economy Macroeconomics,
This paper extends the Dornbusch model of overshooting exchange rates to discuss both exchange rate and output effects of capital controls that involve additional costs for international asset transactions. We show...