Fabiani, Andrea; Lopéz Piñeros, Martha; Peydró, … - 2023
We show that capital controls (CC), by slowing-down firm debt-growth in the boom, improve firm performance during … crises. Exploiting a tax on foreign-currency (FX) debt inflows in Colombia before the Global Financial Crisis (GFC) and … multiple firm-level and loan-level administrative datasets, we find that CC reduce FX-debt inflows. Firms with weaker local …