01673cas a2200241 a 4500 AALejournalIMF000816 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451844122 1018-5941 BD-DhAAL BD-DhAAL Jang, B. Capital Controls and Trade Liberalization in a Monetary Economy / B. Jang. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (24 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper reexamines Aizenman's (1985) results on the effects of capital controls during unanticipated trade liberalization using an intertemporal optimizing monetary model. Unlike in Aizenman's model, which is based on the currency substitution model, foreign money is an interest-bearing asset in this paper, and its major role is to smooth intertemporal consumption. With this modification, Aizenman's results are reversed, thus showing that the effects of capital controls during trade liberalization would vary greatly depending on the role of foreign money in a country. The effects of an anticipated trade liberalization are also studied. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1999/024 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/024/001.1999.issue-024-en.xml IMF e-Library