The Resource Capital controls with international reserve accumulation : can this be optimal?, Philippe Bacchetta, Kenza Benhima and Yannick Kalantzis, (electronic resource)

Capital controls with international reserve accumulation : can this be optimal?, Philippe Bacchetta, Kenza Benhima and Yannick Kalantzis, (electronic resource)

Label
Capital controls with international reserve accumulation : can this be optimal?
Title
Capital controls with international reserve accumulation
Title remainder
can this be optimal?
Statement of responsibility
Philippe Bacchetta, Kenza Benhima and Yannick Kalantzis
Creator
Contributor
Author
Language
eng
Summary
Motivated by the Chinese experience, we analyze a semi-open economy where the central bank has access to international capital markets, but the private sector has not. This enables the central bank to choose an interest rate different from the international rate. We examine the optimal policy of the central bank by modelling it as a Ramsey planner who can choose the level of domestic public debt and of international reserves. The central bank can improve savings opportunities of credit-constrained consumers modelled as in Woodford (1990). We find that in a steady state it is optimal for the central bank to replicate the open economy, i.e., to issue debt financed by the accumulation of reserves so that the domestic interest rate equals the foreign rate. When the economy is in transition, however, a rapidly growing economy has a higher welfare without capital mobility and the optimal interest rate differs from the international rate. We argue that the domestic interest rate should be temporarily above the international rate. We also find that capital controls can still help reach the first best when the planner has more fiscal instruments
Member of
Cataloging source
IT-FiEUI
http://library.link/vocab/creatorName
Bacchetta, Philippe
Illustrations
illustrations
Index
no index present
Literary form
non fiction
Nature of contents
bibliography
http://library.link/vocab/relatedWorkOrContributorName
  • Benhima, Kenza
  • Kalantzis, Yannick
  • Centre for Economic Policy Research (Great Britain)
Series statement
Discussion paper / Centre for Economic Policy Research
Series volume
no. 8753
Label
Capital controls with international reserve accumulation : can this be optimal?, Philippe Bacchetta, Kenza Benhima and Yannick Kalantzis, (electronic resource)
Link
http://www.cepr.org.ezproxy.eui.eu/content/discussion-papers
Instantiates
Publication
Note
"January 2012"
Bibliography note
Includes bibliographical references (pages 28-31)
Carrier category
online resource
Carrier category code
cr
Carrier MARC source
rdacarrier.
Color
mixed
Content category
text
Content type code
txt
Content type MARC source
rdacontent.
Control code
FIEb17447756
Dimensions
unknown
Extent
46 pages
Media category
computer
Media MARC source
rdamedia.
Media type code
c
Other physical details
illustrations.
Specific material designation
remote
System control number
(OCoLC)1088494059
Label
Capital controls with international reserve accumulation : can this be optimal?, Philippe Bacchetta, Kenza Benhima and Yannick Kalantzis, (electronic resource)
Link
http://www.cepr.org.ezproxy.eui.eu/content/discussion-papers
Publication
Note
"January 2012"
Bibliography note
Includes bibliographical references (pages 28-31)
Carrier category
online resource
Carrier category code
cr
Carrier MARC source
rdacarrier.
Color
mixed
Content category
text
Content type code
txt
Content type MARC source
rdacontent.
Control code
FIEb17447756
Dimensions
unknown
Extent
46 pages
Media category
computer
Media MARC source
rdamedia.
Media type code
c
Other physical details
illustrations.
Specific material designation
remote
System control number
(OCoLC)1088494059

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