Publication
Aug 2013
This paper analyzes the effectiveness of capital controls introduced in Brazil to counter appreciation of the Real. Based on a data set from the Brazilian foreign exchange market, the authors examine the interaction among the central bank, financial customers and commercial customers in times of regulatory policy measures. The findings indicate that capital controls change market participants' behavior and commercial customers, rather than financial customers, drive the value of the Real.
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English (PDF, 27 pages, 454 KB) |
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Author | Calebe de Roure, Steven Furnagiev, Stefan Reitz |
Series | Kiel Institute Working Papers |
Issue | 1865 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2013 Kiel Institute for the World Economy |