David, Antonio C.2012-06-062012-06-062007-03https://hdl.handle.net/10986/7235The author attempts to analyze whether price-based controls on capital inflows are successful in insulating economies against external shocks. He presents results from vector auto regressive (VAR) models that indicate that Chile and Colombia, countries that adopted controls on capital inflows, seem to have been relatively well insulated against external disturbances. Subsequently, he uses the auto regressive distributed lag (ARDL) approach to co-integration to isolate the effects of the capital controls on the pass-through of external disturbances to domestic interest rates in those economies. The author concludes that there is evidence that the capital controls allowed for greater policy autonomy.CC BY 3.0 IGOARBITRAGEBALANCE SHEETSBONDSCAPITAL ACCOUNTCAPITAL ACCOUNT POLICIESCAPITAL ACCOUNT RESTRICTIONSCAPITAL CONTROLSCAPITAL FLOWSCAPITAL GAINSCAPITAL INFLOWCAPITAL INFLOWSCAPITAL OUTFLOWSCENTRAL BANKCENTRAL BANKSCOMPOSITION OF CAPITAL INFLOWSCONSUMER PRICE INDEXCOUNTRY RISKCREDIT EXPANSIONCRISIS EPISODESCURRENCY CRISESCURRENCY MISMATCHCURRENCY REGIMECURRENCY RISKCURRENT ACCOUNTCURRENT ACCOUNT DEFICITSCYCLICAL COMPONENTDEPOSIT INTERESTDEPOSIT INTEREST RATESDEPOSIT RATEDEPOSIT REQUIREMENTDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDOMESTIC ECONOMYDOMESTIC INFLATIONDOMESTIC INTEREST RATEDOMESTIC INTEREST RATESDOMESTIC RESIDENTSECONOMETRICSECONOMIC ACTIVITYECONOMIC REVIEWECONOMIC SITUATIONECONOMIC VOLATILITYEMERGING ECONOMIESEMERGING MARKETSENDOGENOUS VARIABLESEXCHANGE RATE REGIMEEXCHANGE RATESEXCHANGE-RATEEXOGENOUS VARIABLESEXPORTSEXTERNAL DEBTEXTERNAL DISTURBANCESEXTERNAL SHOCKSEXTERNALITYFEDERAL RESERVE BANKFEDERAL RESERVE BOARDFEDERAL RESERVE SYSTEMFINANCIAL CONTAGIONFINANCIAL CRISESFINANCIAL CYCLESFINANCIAL FRAGILITYFINANCIAL INTEGRATIONFINANCIAL INTERMEDIARIESFINANCIAL MARKETFINANCIAL MARKETSFOREIGN CURRENCYFOREIGN EXCHANGEFOREIGN EXCHANGE MARKETFOREIGN INTEREST RATEFOREIGN INTEREST RATESFOREIGN INVESTORSFOREIGN RATESFOREIGN RESERVESFOREIGN SHOCKSGLOBAL TRANSMISSION OF INTEREST RATESGLOBALIZATION OF SECURITIES MARKETSHIGH INFLATIONHOT MONEYINFLATION RATEINTERNATIONAL CAPITALINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL FINANCIAL STATISTICSINTERNATIONAL INVESTORSINTERNATIONAL MARKETSINTERNATIONAL RESERVESLATIN AMERICANLIQUIDITYMACROECONOMIC POLICIESMACROECONOMIC VARIABLESMACROECONOMICSMONETARY POLICYMORAL HAZARDMULTIPLE EQUILIBRIANOMINAL EXCHANGE RATEOPEN ECONOMIESOPEN ECONOMYOPPORTUNITY COSTOVERVALUATIONPOLICY RESEARCHPORTFOLIOSREAL EXCHANGEREAL EXCHANGE RATEREAL EXCHANGE RATE APPRECIATIONREAL EXCHANGE RATE OVERVALUATIONREAL INTERESTREAL INTEREST RATEREAL TERMSRESERVERESERVE REQUIREMENTRESERVE REQUIREMENTSRISK AVERSIONRISK PREMIARISK PREMIUMSHORT-TERM CAPITALSHORT-TERM CAPITAL INFLOWSSHORT-TERM DEBTSIDE EFFECTST-BILLSTRANSMISSION MECHANISMWorld Bank10.1596/1813-9450-4176