Economics, Econometrics and Finance
4 years ago

Capital control slashes interest rates, boosts economy, and reduces debt risk!

Contemporary Economic Policy
CAPITAL CONTROL AND DOMESTIC INTEREST RATES: A GENERALIZED MODEL
Hsiao-Tang Hsu

Paper Summary

Related papers

Business, Management and Accounting
a year ago

Debt-Fueled Companies Face Heightened Financial Risks, Require Careful Capital Management

Financial Management
2 views
Business, Management and Accounting
8 years ago

Debt Use Boosts Firm Value, But Only Up to a Point

Corporate Governance
Value-based Management
1 view
Business, Management and Accounting
6 years ago

Unlocking Financial Success: How Agricultural Cooperatives Can Lower Costs

Corporate Governance
Value-based Management
Cooperative Governance
2 views

Capital control can lower interest rates and boost the economy by reducing external debt. By limiting borrowing from abroad, governments can decrease moral hazard, leading to lower interest rates and increased output. This goes against previous theories on capital control.