CONTAGIOUS POLICIES: AN ANALYSIS OF SPATIAL INTERACTIONS AMONG COUNTRIES' CAPITAL ACCOUNT POLICIES

Autor(en): Steiner, Andreas
Stichwörter: Business & Economics; CRISES; Economics; FINANCIAL LIBERALIZATION; GLOBALIZATION
Erscheinungsdatum: 2010
Herausgeber: WILEY
Journal: PACIFIC ECONOMIC REVIEW
Volumen: 15
Ausgabe: 3
Startseite: 422
Seitenende: 445
Zusammenfassung: 
Countries' capital account policies might be contagious in the sense that domestic policies are driven by other countries' policies. A model of strategic interactions is developed to show that countries' best response to policy changes elsewhere consists in imitating this policy. Using a spatial econometric model, the hypothesis of policy interactions is tested in a large panel data set. The evidence shows that capital account policies are contemporaneously correlated across countries. Concerning fundamentals, the move to a fixed exchange rate regime and an increase in real world interest rates are correlated with the imposition of capital account restrictions.
ISSN: 1361374X
DOI: 10.1111/j.1468-0106.2010.00511.x

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