An Analytical and Taxonomic Framework for the Study of Exchange Controls

  • Kate Phylaktis
  • Geoffrey E. Wood
Part of the International Economics Study Group book series (IESG)


Controls on the international movement of capital have at one time or another been used by a majority of countries. These controls have some-times been used under pegged exchange rates, and at other times under floating exchange rates. In this chapter we develop an analytical framework for classifying, and appraising the impact of, various forms of exchange control. This chapter therefore does not aim to study the workings of one set of ex-change controls in detail, but rather to develop a tool-kit for such a study.


Exchange Rate Interest Rate Capital Inflow Foreign Asset Foreign Exchange Market 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. R. A. Batchelor and B. Griffiths (1980) ‘Monetary Restraint Under Credit Controls: The Lessons of the Current Practice in the UK’, Discussion Paper No. 9, Centre for Banking and International Finance, The City University.Google Scholar
  2. R. A. Batchelor and J. Horne (1979) ‘Money, the Balance of Payments and the Rate of Exchange’, Annual Monetary Review No. 1, Centre for Banking and International Finance, The City University, October.Google Scholar
  3. V. Barattieri and G. Ragazzi (1971) ‘An Analysis of a Two-Tier Foreign Exchange Market,’Banca Nationale de Lavoro, Quarterly Review, No. 99, December.Google Scholar
  4. J. Bhagwati (1969) ‘On the Equivalence of Tariffs and Quotas’, in J. Bhagwati (ed.), Trade, Tariffs and Growth (MIT Press).Google Scholar
  5. R. E. Caves (1976) ‘The Welfare Economics of Control on Capital Movements’, in A. K. Swoboda (ed.) Capital Movements and their Control ( Leiden: Sijthoff ).Google Scholar
  6. R. Dornbusch (1976) ‘Expectations and Exchange Rate Dynamics’, Journal of Political Economy, December.Google Scholar
  7. G. Dufey and I. H. Giddy (1978) The International Money Market (New York: Prentice-Hall, Foundations of Finance Series).Google Scholar
  8. J. M. Fleming (1971) ‘Dual Exchange Rates for Current and Capital Transactions: A Theoretical Examination’, in Essays in International Economics (Harvard University Press).Google Scholar
  9. J. M. Fleming (1974) ‘Dual Exchange Markets and Other Remedies for Disruptive Capital Flows’, International Monetary Fund Staff Papers.Google Scholar
  10. R. J. Herring and R. C. Marston (1976) ‘The Forward Market and Interest Rates in the Eurocurrency and National Money Markets’ in C. H. Stern, J. H. Makin, D. E. Logue (eds) Euro currencies and the International Monetary System, American Enterprise Institute for Public Policy Research.Google Scholar
  11. R. B. Johnston (1979) ‘Some aspects of the determination of Euro- currency Interest Rates’, Bank of England Quarterly Bulletin, March.Google Scholar
  12. A. Lanyi (1975) ‘Separate Exchange Markets for Capital and Current Transactions’, International Monetary Fund Staff Papers, vol. 22, November.Google Scholar
  13. R. M. Levich and J. A. Frenkel (1975) ‘Covered Interest Arbitrage: Unexploited Profits?’, Journal of Political Economy, April.Google Scholar
  14. R. H. Mills (1976) ‘The Regulation of Short-Term Capital Movements in Major Industrial Countries’, in A. K. Swoboda (ed.) Capital Movements and their Control ( Leiden: Sijthoff ).Google Scholar
  15. I. Otani and S. Tiwazi (1981) ‘Capital Controls and Interest Rate Parity: The Japanese Experience, 1978–1981’, International Monetary Fund Staff Papers, December.Google Scholar
  16. UK (1980) House of Commons, Treasury and Civil Service Committee, Session 1979–80, Monetary Policy, November.Google Scholar
  17. J. C. Van Home (1970) Function and Analysis of Capital Market Rates ( New York, Prentice-Hall).Google Scholar

Copyright information

© International Economics Study Group 1984

Authors and Affiliations

  • Kate Phylaktis
  • Geoffrey E. Wood

There are no affiliations available

Personalised recommendations