Can Short-Term Capital Controls Promote Capital Inflows? /

In an economy a la Diamond and Dybvig (1983), we present an example in which foreign lenders find it profitable to invest in an emerging market if, and only if, the emerging market government imposes taxes on short-term capital inflows. This implies that capital controls that are effective in reduci...

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Détails bibliographiques
Auteur principal: Cordella, Tito
Format: Revue
Langue:English
Publié: Washington, D.C. : International Monetary Fund, 1998.
Collection:IMF Working Papers; Working Paper ; No. 1998/131
Accès en ligne:Full text available on IMF
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Résumé:In an economy a la Diamond and Dybvig (1983), we present an example in which foreign lenders find it profitable to invest in an emerging market if, and only if, the emerging market government imposes taxes on short-term capital inflows. This implies that capital controls that are effective in reducing the vulnerability of emerging markets to financial crises may increase the volume of capital inflows.
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Description matérielle:1 online resource (10 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accès:Electronic access restricted to authorized BRAC University faculty, staff and students