Event start date: 13.02.2020 11:00

On 13 February 2020, the National Bank of Ukraine hosted an open research seminar, during which Nicolas Aragon, Visiting Professor of Economics at Universidad Carlos, presented the research Capital Controls and Misallocation, co-authored with Lian Allub from CAF- Development Bank of Latin America and Hernan Seoane (UC3M).

The authors studied the effects of international flow volatility on productivity, and the desirability of capital control. Researchers include international investors into a model of factor misallocation and aggregate risk. In the model, capital controls reduce both liquidity and expected volatility. This affects the investment choices of domestic entrepreneurs and thus has an impact on aggregate productivity. The results are consistent with the evidence on sudden reversals in the current account. Materials from the seminar are available via the links below.