effects of exchange controls on trade. To minimize evasion of controls, countries often intensify inspections at the border … and increase documentation requirements. Thus, the cost of conducting trade rises. The paper finds that a one standard …-deviation increase in the controls on trade payment has the same negative effect on trade as an increase in tariff by about 14 percentage …

This note discusses capital controls using insights from the trade policy literature. It highlights some key issues … many goods and services are. As a result, much of the analysis pertaining to trade and trade policy in goods and services … applies with equal force to capital movements. Free trade is typically the best trade policy, no matter whether it is trade in …

This note discusses capital controls using insights from the trade policy literature. It highlights some key issues … many goods and services are. As a result, much of the analysis pertaining to trade and trade policy in goods and services … applies with equal force to capital movements. Free trade is typically the best trade policy, no matter whether it is trade in …

How does the conduct of optimal cross-border financial policy change with prevailing trade agreements? We study the … joint optimal determination of trade policy and capital- flow management in a two-country, two-good model with trade in … welfare by departing from free trade in addition to levying capital controls, absent retaliation from abroad. However, time …

desirable for EME policymakers to promote diversification of lender countries and induce more borrowing from local subsidiaries …