David, Antonio C.2012-06-052012-06-052007-03https://hdl.handle.net/10986/7208The author evaluates the effectiveness of policy measures adopted by Chile and Colombia, aiming to mitigate the deleterious effects of pro-cyclical capital flows. In the case of Chile, according to his Generalized Method of Moments (GMM) analysis, capital controls succeeded in reducing net short-term capital flows but did not affect long-term flows. As far as Colombia is concerned, the regulations were capable of affecting total flows and also long-term ones. In addition, the co-integration models indicate that the regulations did not have a direct effect on the real exchange rate in the Chilean case. Nonetheless, the model used for Colombia did detect a direct impact of the capital controls on the real exchange rate. Therefore, the results do not seem to support the idea that those regulations were easily evaded.CC BY 3.0 IGOACCELERATORADMINISTRATIVE CAPITALARBITRAGEASYMMETRIC INFORMATIONBALANCE OF PAYMENTSBALANCE SHEETSBANK LOANSBANKRUPTCYBOUNDED RATIONALITYBUSINESS CYCLECAPITAL ACCOUNTCAPITAL ACCOUNT CONVERTIBILITYCAPITAL ACCOUNT POLICIESCAPITAL ACCOUNT RESTRICTIONSCAPITAL CONTROLSCAPITAL FLOWCAPITAL FLOW REVERSALSCAPITAL FLOWSCAPITAL GAINSCAPITAL INFLOWCAPITAL INFLOWSCAPITAL MARKETSCAPITAL OUTFLOWSCENTRAL BANKCENTRAL BANKSCOMMERCIAL BANKSCOMPARATIVE ANALYSISCOUNTRY RISKCURRENCY CRISESCURRENCY RISKCURRENT EXCHANGE RATECYCLICAL COMPONENTDEPOSIT REQUIREMENTDEPOSIT REQUIREMENTSDEPOSITSDEVELOPING COUNTRIESDOMESTIC INTEREST RATEDOMESTIC INTEREST RATESDOMESTIC PRICESECONOMETRIC ANALYSISECONOMETRICSECONOMIC ACTIVITYELASTICITYEMERGING ECONOMIESEMERGING MARKETSEMPIRICAL EVIDENCEENDOGENOUS VARIABLESEXCHANGE RATE DEPRECIATIONEXCHANGE RATE REGIMEEXOGENOUS VARIABLESEXTERNAL DEBTEXTERNAL ENVIRONMENTEXTERNAL SHOCKSFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL INTEGRATIONFINANCIAL INTERMEDIARIESFINANCIAL LIBERALIZATIONFINANCIAL MARKETFINANCIAL STATEMENTSFINANCIAL VOLATILITYFOREIGN ASSETSFOREIGN CURRENCYFOREIGN CURRENCY DEBTFOREIGN EXCHANGEFOREIGN INTEREST RATEFOREIGN INTEREST RATESFOREIGN INVESTORGDPGOVERNMENT EXPENDITURESGOVERNMENT SPENDINGHIGH INTEREST RATESHIGH RESERVE REQUIREMENTSINTEREST RATEINTEREST RATE DIFFERENTIALSINTEREST RATESINTERNATIONAL CAPITALINTERNATIONAL CAPITAL FLOWSINTERNATIONAL CAPITAL MARKETSLIBERALIZATION OF CAPITALLIQUIDITYLONG TERMMACROECONOMIC EFFECTSMACROECONOMIC ENVIRONMENTMACROECONOMIC PERFORMANCEMACROECONOMIC POLICYMACROECONOMIC VOLATILITYMACROECONOMICSMONETARY POLICYMORAL HAZARDNET CAPITALNET CAPITAL FLOWSNET FLOWSNET FOREIGN ASSETSOPPORTUNITY COSTPENSION FUNDSPOLICY RESEARCHPRIVATE CAPITALPRIVATE CAPITAL FLOWSPRIVATE SECTORREAL EXCHANGEREAL EXCHANGE RATEREAL EXCHANGE RATE APPRECIATIONREAL EXCHANGE RATE OVERVALUATIONREAL EXCHANGE RATESRESERVERESERVE REQUIREMENTRESERVE REQUIREMENTSRETURN DIFFERENTIALSRISK PREMIUMSHORT-TERM CAPITALSHORT-TERM CAPITAL INFLOWSTRADE BALANCEWorld Bank10.1596/1813-9450-4175