Can Short-Term Capital Controls Promote Capital Inflows?:

In an economy à 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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Bibliographic Details
Main Author: Cordella, Tito (Author)
Format: Electronic eBook
Language:English
Published: Washington, D.C International Monetary Fund 1998
Series:IMF Working Papers Working Paper No. 98/131
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Summary:In an economy à 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
Physical Description:1 Online-Ressource (10 p)
ISBN:1451855257
9781451855258

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