We investigate how internal distribution motives can interfere with the economic objectives of capital controls. In … official reserves under capital controls. Relying on these theoretical insights and a wealth of quantitative and qualitative …

We study how capital controls and domestic macroprudential policy tame credit supply booms, either directly or by … during a boom. We find that capital controls strengthen the bank-lending channel. Increasing the local monetary policy rate … expensive peso lending, especially towards riskier firms. Capital controls tax FX-debt and break the carry-trade. Differently …

The implications of a large public debt for the implementation of capital controls for an economy where tax revenue … collection is costly are examined. Conditions are analyzed under which policymakers will resort to capital controls to reduce the … cost of recycling domestic public debt. The linkages between a costly tax collection mechanism, capital controls, am …