01727cas a2200241 a 4500 AALejournalIMF007792 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451921410 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Terms of Trade Disturbances, Real Exchange Rates, and Welfare : The Role of Capital Controls and Labor Market Distortions. Washington, D.C. : International Monetary Fund, 1989. 1 online resource (32 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 Many arguments that have been advanced in favor of maintaining capital controls within the EC have not paid sufficient attention to the welfare consequences of this type of market intervention. Our paper provides a simple, optimizing framework in which the welfare consequences of capital controls can be assessed. Two main issues are considered. First, how do capital controls affect the adjustment of macroeconomic variables to real disturbances? Second, what is the nature of second best arguments for maintaining capital controls given that certain distortions will remain after the European single market is in place in 1992?. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1989/021 Full text available on IMF http://elibrary.imf.org/view/journals/001/1989/021/001.1989.issue-021-en.xml IMF e-Library