Capital controls - Investigating International Finance, Episode 2
Level: beginnerNew Economics Foundation, 2012
In the second video of the series Investigating International Finance, an alternative view on capital controls is given contrasting with the paradigm of classical trade theory suggesting that the removal of trade and capital barriers is associated with higher market efficiency. After explaining the conceptual mechanisms underlying capital controls, examples are introduced where countries actually apply capital controls and how these controls have been associated with a lesser exposure to international financial crises spillovers.
capital controls finance financial crisis international capital market integration resilience trade trade theory