A New Set of Measures on Capital Account Restrictions

This paper extends the IMF's post-1996 disaggregated capital account indices back to 1983 for a representative sample of 34 countries. All the information used to construct the indices comes from IMF's Annual Report on Exchange Arrangements and Exchange Restrictions and is widely available. It is shown that the disaggregated indices do a better job than the pre-1996 single dummy in reflecting both global trends toward capital account liberalization and country-specific liberalization episodes that occurred during the period. Given the frequency oflMF reporting procedures, the disaggregated indices still fail to accurately track temporary control programs designed to fight off crises. Moreover; the lack of systematic information on enforcement means that the indices remain de jure. Some tentative solutions to these limitations are suggested.