Capital movement control

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In foreign trade, capital controls are state measures to restrict the freedom of the free international movement of capital . These include taxes on capital imports and capital exports , quantity restrictions, approval and reporting requirements. Capital controls are thus also considered in the context of foreign trade theory.

history

Capital controls were z. It was used, for example, in Chile from 1982 to 1999 to limit short-term foreign currency loans, as the sudden withdrawal of such loans can trigger a financial crisis (for example in the Mexican so-called tequila crisis ).

In 2008 Iceland introduced capital controls due to the financial crisis and had to temporarily close banks. In March 2013, Cyprus as a member of the euro zone introduced controls due to a banking crisis, which were lifted again in April 2015.

At the end of June 2015, Greece introduced capital controls due to the sovereign debt crisis and closed the banks and the Athens Stock Exchange .

to form

A basic distinction can be made between:

  • Direct capital controls regulate cross-border financial transactions through approval procedures or bans.
  • Indirect capital controls try to make certain financial transactions more expensive. For example, through taxation of cross-border capital flows ( financial transaction tax ) or through a system of dual or multiple exchange rates.

rating

The financial market theory says that a liberalization of capital movements will lead to lower capital costs and easier access to capital. Free competition would make financial systems more flexible and efficient. In addition, open capital markets also ensured that the economic policies of the countries were subjected to the "disciplining function" of the financial markets. Following this theory, since the 1980s most countries have liberalized their capital markets by dismantling capital controls.

Since then, international financial crises such as For example, the Asian crisis , the Russian crisis or the financial crisis from 2007 onwards , which led some economists to change their assessment of liberalization. For example, those countries that had recently liberalized their financial markets were hardest hit by the Asian crisis. Countries like China or India, which maintained strict capital controls, were barely affected by the crisis. Many economists saw the high volatility (instability) of international capital flows as the source of international financial crises.

Barry Eichengreen and David Leblang represent an intermediary position. According to this, the net benefit of capital controls is positive when the international financial markets go through rather turbulent phases, because the national economy is then protected from the effects of contagion. However, when international financial markets are in robust shape, the growth-promoting effects of free financial markets dominate and the net effect of capital controls is negative.

In the European Union , capital controls as a restriction on the free movement of capital are regulated by Art. 63 and Art. 65 TFEU .

See also

Web links

Wiktionary: Capital movement control  - explanations of meanings, word origins, synonyms, translations

Individual evidence

  1. ^ Springer Gabler Verlag (editor), Gabler Wirtschaftslexikon , international capital controls
  2. ↑ Mauricio Vargas: The importance of financial development in the catching-up process of developing and emerging countries . Lucius & Lucius Verlagsgesellschaft mbH, 2012, ISBN 978-3-8282-0563-5 , p. 311.
  3. ^ FAZ: Keyword capital controls . FAZ , June 20, 2015, archived from the original on June 29, 2015 . ;.
  4. ↑ Manager Magazin: Cyprus lifts capital controls . Article dated April 6, 2015, accessed June 29, 2015.
  5. ↑ a b c Helmut Wagner: Introduction to world economic policy . Oldenbourg Wissenschaftsverlag GmbH, 6th edition 2009, ISBN 978-3-486-59109-5 , p. 229.
  6. ^ Helmut Wagner: Introduction to world economic policy . Oldenbourg Wissenschaftsverlag GmbH, 6th edition 2009, ISBN 978-3-486-59109-5 , p. 230.
  7. ^ Steffen Hindelang: Commentary on the regulations on capital and payment transactions in the TFEU . Walter Hallstein -Institute for European Constitutional Law, Humboldt University of Berlin (WHI), PAPER 02/2014 ( online as PDF ), Art. 63 Rn. 14 and Art. 65 para. 50.