The objective of this study is to explore the feasibility of identifying factors that could presage the imposition of exchange controls. Two sets of variables are argued to contain pertinent information regarding the imposition of controls. One set is composed of 14 economic ratios related to the balance of payments and exchange rate; the other set is made up of 17 proxy measures of sociopolitical instability. The empirical analysis of exchange controls imposed by 13 governments during 1973–1983 shows that these variables have potential for predicting the imposition of exchange controls.
Available at: http://works.bepress.com/alifatemi/26/