01729cas a2200277 a 4500 AALejournalIMF008036 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451859515 1018-5941 BD-DhAAL BD-DhAAL Nickel, Christiane. The Effects of Capital Controls on Exchange Rate Volatility and Output / Christiane Nickel, Gunter Schmidt, Georg Stadtmann, Michael Frenkel. Washington, D.C. : International Monetary Fund, 2001. 1 online resource (30 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 extends the Dornbusch model of overshooting exchange rates to discuss both exchange rate and output effects of capital controls that involve additional costs for international asset transactions. We show that, on the one hand, such capital controls have the merit of reducing the volatility of exchange rates following a monetary shock. On the other hand, the implementation increases exchange rate volatility in the short run and induces costs for the real sector in the form of lower equilibrium output levels. Mode of access: Internet Frenkel, Michael. Schmidt, Gunter. Stadtmann, Georg. IMF Working Papers; Working Paper ; No. 2001/187 Full text available on IMF http://elibrary.imf.org/view/journals/001/2001/187/001.2001.issue-187-en.xml IMF e-Library