Capital Controls and the International Transmission of U.S. Money Shocks

By Jacques A Miniane, J. Rogers. 2003

133 citations recorded by the source corpus.

In this paper we assess whether capital controls effectively insulate countries from U.S. monetary shocks, looking simultaneously at a large range of country experiences in a unified estimation framework. We estimate the effect of identified U.S. monetary shocks on the exchange rate and foreign country interest rates, and test whether countries with less open capital accounts exhibit systematically smaller responses. We find essentially no evidence in favor of this notion. Other country factors such as the exchange rate regime or degree of dollarization explain more of the cross-country differences in responses. The significant differences in responses we do find are more pronounced at short horizons.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/50d8bd30f9a2795f63dd7de7718f14cba8d7169b

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Citations in the corpus

External shocks, U.S. monetary policy and macroeconomic fluctuations in emerging markets (2007, unknown): “Furthermore, Miniane and Rogers (2003) estimate the effects of U.S. monetary policy shocks on interest rates in developed economies and emerging markets.”
If the Fed Sneezes, Who Catches a Cold? (2017, background): “…of this lack of consensus is that most studies have tended to focus either on a limited set of countries (e.g., G7 countries, as in Kim (2001)) or on a limited set of variables (mainly output, inflation, short-term rates and bilateral dollar exchange rates as in e.g., Miniane and Rogers (2007)).”
Does Inflation Targeting Make a Difference (2007, unknown): “…4 depicts the dynamic response of domestic inflation to an international oil price shock in inflation-targeting countries before they adopted inflation 15) For applied studies using panel VAR estimation, see Holtz-Eakin, Newey, and Rosen, 1988; Love and Zicchino, 2002; Miniane and Rogers, 2003.”
Global Financial Transmission of Monetary Policy Shocks (2009, unknown): “Miniane and Rogers (2003) assess whether capital controls manage to insulate countries from US monetary shocks, by estimating their effect on the exchange rate and foreign interest rates.”
Domestic and multilateral effects of capital controls in emerging markets (2018, unknown): “Miniane and Rogers (2007) show that countries with more-stringent capital controls were not more insulated from foreign monetary policy shocks.”
A New Set of Measures on Capital Account Restrictions (2004, background): “In this context, recent papers by De Gregorio, Edwards, and Valdés (2000), Edison and Reinhart (2001), and Miniane and Rogers (2003) have tried to assess the effectiveness of capital controls in shaping the size and maturity of capital flows.”
Global Asset Prices and FOMC Announcements (2006, background): “Shambaugh (2004), Frankel, Schmukler, and Serven (2004), and Miniane and Rogers (2003) find that the more flexible a country’s exchange rate regime, the less the short-run response of domestic interest rates to changes in U.S. interest rates.”
Determinants of Global Spillovers from US Monetary Policy (2015, background): “Third, this paper is related to the literature analysing the role of specific country characteristics— such as the exchange rate regime or the extent of capital controls—for spillovers (see Philippon et al., 2001; Frankel et al., 2004; Shambaugh, 2004; Miniane and Rogers, 2007).”
What is Global Excess Liquidity, and Does it Matter? (2006, background): “Betts and Deveraux (2001) and Miniane and Rogers (2003) also provide evidence for a positive transmission effect of US expansionary monetary policy shocks on output in other countries.”