Convertibility, currency controls and the cost of capital in Western Europe, 1950-1999

Welcome to the UPF Digital Repository

International Journal of Finance & Economics, 8 (2003), 3, pp. 255-276
http://hdl.handle.net/10230/536
To cite or link this document: http://hdl.handle.net/10230/536
dc.contributor.author Voth, Hans Joachim
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.issued 2001-05-01
dc.identifier.citation International Journal of Finance & Economics, 8 (2003), 3, pp. 255-276
dc.identifier.uri http://hdl.handle.net/10230/536
dc.description.abstract For most of the post-war period, Europe’s capital markets remained largely closed to international capital flows. This paper explores the costs of this policy. Using an event-study methodology, I examine the extent to which restrictions of current and capital account convertibility affected stock returns. The delayed introduction of full currency convertibility increased the cost of capital. Also, a string of measures designed to reduce capital mobility before the ultimate collapse of the Bretton Woods System had considerable negative effects. These findings offer an explanation for the mounting evidence suggesting that capital account liberalization facilitates growth.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 552
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Convertibility, currency controls and the cost of capital in Western Europe, 1950-1999
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2014-06-03T07:14:05Z
dc.subject.keyword Economic and Business History
dc.subject.keyword cost of capital
dc.subject.keyword liberalization
dc.subject.keyword current account
dc.subject.keyword capital account
dc.subject.keyword convertibility
dc.rights.accessRights info:eu-repo/semantics/openAccess


See full text
This document is licensed under a Creative Commons license:

Search


Advanced Search

Browse

My Account

Statistics