What Makes Capital Account Regulation Effective? Comparing the Experiences of Brazil, Peru, and Iceland. Issue 3 (2nd July 2020)

• Record Type: Journal Article
• Authors: Aguirre, Pablo; Alonso, José Antonio
• Is Part Of: Journal of economic issues. Volume 54:Issue 3(2020)
• Page Start: 772
• Page End: 797
• Publication Date: 2020-07-02
• Subjects: capital account regulation -- capital controls -- Brazil -- Peru -- Iceland; F38 -- F650 -- P16; Economics -- Periodicals; Economics; Économie politique -- Périodiques; Economie; ECONOMICS; ECONOMIC POLICY; Periodicals; 330.05
• DOI: 10.1080/00213624.2020.1787052
• Languages: English
• ISSNs: 0021-3624

Abstract

Abstract : Empirical studies confirm that the impact of capital account regulation (CAR) is highly case-specific, which underlines the need to identify the determinants of CAR effectiveness in greater depth. Coming from a political economy perspective, this article aims to contribute to this subject by comparing three experiences of intense regulation: Brazil (2008-2013), Peru (2008-2013), and Iceland (2008-2017). The main result encountered is that the bargaining power of the different sectors involved in regulation represents a crucial factor in explaining the impact of this policy. Furthermore, domestic banks play an important role in the effectiveness of capital account regulation.