This paper investigates the relationship between capital account openness and inflation since the 1980s. It argues that widespread capital account liberalization during the last two decades appears to have contributed to the worldwide disinflation observed during the same period. The paper...

The paper investigates whether free capital mobility leads a government to tighten its budget deficit for fear of being penalized from the international capital market. The author tests the hypothesis using three-stage least squares (3SLS), which can control for the endogenous nature of capital...

The article explores the relationship between free transfer clauses and exchange restrictions. The transfer of funds provision is a common feature of BITs, albeit of limited practical relevance thus far. The free transfer provision is particularly important in difficult economic times, when the...