Tobin tax etc.

[michael at ecst.csuchico.edu]

The point of Feldstein-Horioka is not that capital flows are unimportant,
but that NET capital flows are small.  For example, the IMF will give
Indonesia $40 billion.  Suharto's net worth is about $40.  So if he
manages to transfer his wealth out of the country, the net flow will be
zero.

 -- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu