Global imbalances and taxing capital flows
Goodhart, Charles; Peiris, M. U.; and Tsomocos, Dimitrios P.
(2013)
Global imbalances and taxing capital flows.
International Journal of Central Banking, 9 (2).
pp. 13-44.
ISSN 1815-4654
We study a monetary economy with two large open economies displaying net real and financial flows. If default on cross-border loans is possible, taxing financial flows can reduce its negative consequences. In doing so it can improve welfare unilaterally, in some cases in a Pareto sense, via altering the terms of trade and reducing the costs of such default.
| Item Type | Article |
|---|---|
| Keywords | international finance,global imbalances,fiscal policy,macro-pruduential |
| Departments | Financial Markets Group |
| Date Deposited | 19 Jun 2013 15:33 |
| URI | https://researchonline.lse.ac.uk/id/eprint/50833 |
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- http://www.ijcb.org/journal/ijcb13q2a1.htm (Publisher)