Otrok, Christopher; Benigno, Gianluca; Chen, Huigang; … - Economics Department, University of Missouri - 2012
as capital controls and other government distortions have become part of the standard policy toolkit (the so-called macro … capital controls are welfare enhancing and can be justified rigorously because of second-best considerations. Within the same … crisis times always welfare- dominates prudential capital controls as it can achieve the first best unconstrained allocation …