This code replicates the graphs from the paper Managing Capital Outflows: The Role of Foreign. Exchange Intervention. by Suman S. Basu, Atish R. Ghosh, Jonathan D. Ostry and Pablo E. Winant.

The code requires Python 3.6 and depends on two libraries:

• dolo
• backtothetrees

An up-to-date version of the code can be found on github

To generate the results run:

• python compute_simulations.py : creates files with various simulation results

  • precomputed_decision_rules.pickle
  • precomputed_moving_target.pickle
  • precomputed_simulations.pickle

• python compute_welfares.py: create welfare comparison files:

  • simple_rules_welfare.xlsx (p=1.0)
  • simple_rules_welfare_9.xlsx (p=0.9)
  • simple_rules_welfare_8.xlsx (p=0.8)

The graphs are then created in the notebooke gen_graphs.ipynb which can be opened and run using Jupyter.