Dilemma Not Trilemma? Capital Controls and Exchange Rates with Volatile Capital Flows
The paper considers a standard New Keynesian model of a small open economy with nominal rigidities and studies optimal capital controls. Consistent with the Mundellian view, it finds that the exchange rate regime is key. However, in contrast with the Mundellian view, the paper finds that capital con...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Palgrave Macmillan Publishers,
2017-05-23T15:16:42Z.
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| Subjects: | |
| Online Access: | Get fulltext |