Can Short-Term Capital Controls Promote Capital Inflows? photograph

Can Short-Term Capital Controls Promote Capital Inflows?

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Originally published September 1998
Authors Tito Cordella
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ID1448879
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About 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. . . .

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