Problem
Suppose that capital controls take the form of a total ban on capital inflows, but all capital outflows are permitted. Also suppose that initially the current account surplus is zero. Determine the effects of a temporary increase in total factor productivity, and of a temporary decrease in total factor productivity under a flexible exchange rate. Carefully explain how and why your results differ in the two cases.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.