IMF on K control

Doug Henwood dhenwood at panix.com
Tue Jan 26 18:32:35 PST 1999


[Capital controls to promote investment? The IMF is entering strange territory.]

"Can Short-Term Capital Controls Promote Capital Inflows?"

BY: TITO CORDELLA

International Monetary Fund (IMF)

Universitat Pompeu Fabra

Document: Available from the SSRN Electronic Paper Collection:

http://papers.ssrn.com/paper.taf?abstract_id=139633

Paper ID: IMF Working Paper No. 98/131

Date: September 1998

Contact: TITO CORDELLA

Email: Mailto:tcordella at imf.org

Postal: International Monetary Fund (IMF)

700 19th Street NW

Washington, DC 20431 USA

Phone: (202)623-4306

Fax: (202)623-6961

Paper Requests:

Contact IMF Publication Services at Mailto:publications at imf.org

Postal: IMF Publication Services, 700 19th St NW, Washington, DC

20431 Phone: (202)623-7430 Fax: (202) 623 7201. Printed copies

are available for sale at the cost of US$7.00 a copy, prepayment

required.

ABSTRACT:

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.

JEL Classification: F32, G14, G24



More information about the lbo-talk mailing list