Straetmans, Stefan T.M.; Versteeg, Roald J.; Wolff, … - In: Journal of International Money and Finance 35 (2013) C, pp. 36-53
One of the reasons for governments to employ capital controls is to obtain some degree of monetary independence. In this paper we test whether capital controls can reduce the link between exchange rates fluctuations and cross border interest differentials. Recent capital control proxies are used...