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Book/Printed Material A theory of capital controls as dynamic terms-of-trade manipulation

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Title

  • A theory of capital controls as dynamic terms-of-trade manipulation

Summary

  • "This paper develops a simple theory of capital controls as dynamic terms-of-trade manipulation. We study an infinite horizon endowment economy with two countries. One country chooses taxes on international capital flows in order to maximize the welfare of its representative agent, while the other country is passive. We show that capital controls are not guided by the absolute desire to alter the intertemporal price of the goods produced in any given period, but rather by the relative strength of this desire between two consecutive periods. Specifically, it is optimal for the strategic country to tax capital inflows (or subsidize capital outflows) if it grows faster than the rest of the world and to tax capital outflows (or subsidize capital inflows) if it grows more slowly. In the long-run, if relative endowments converge to a steady state, taxes on international capital flows converge to zero. Although our theory emphasizes interest rate manipulation, the country's net financial position per se is irrelevant"--National Bureau of Economic Research web site.

Names

  • Costinot, Arnaud, 1978-
  • Lorenzoni, Guido
  • Werning, Iván
  • National Bureau of Economic Research

Created / Published

  • Cambridge, MA : National Bureau of Economic Research, c2011.

Notes

  • -  Title from PDF file as viewed on 2/21/2012.
  • -  Includes bibliographical references.
  • -  Also available in print.
  • -  Mode of access: World Wide Web.
  • -  System requirements: Adobe Acrobat Reader.

Call Number/Physical Location

  • HB1

Digital Id

Library of Congress Control Number

  • 2011657557

Access Advisory

  • Unrestricted online access

Online Format

  • image
  • pdf

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Citations are generated automatically from bibliographic data as a convenience, and may not be complete or accurate.

Chicago citation style:

Costinot, Arnaud, Guido Lorenzoni, Iván Werning, and National Bureau Of Economic Research. A Theory of Capital Controls as Dynamic Terms-Of-Trade Manipulation. Cambridge, MA: National Bureau of Economic Research, 2011. Pdf. https://aj.sunback.homes/item/2011657557/.

APA citation style:

Costinot, A., Lorenzoni, G., Werning, I. & National Bureau Of Economic Research. (2011) A Theory of Capital Controls as Dynamic Terms-Of-Trade Manipulation. Cambridge, MA: National Bureau of Economic Research. [Pdf] Retrieved from the Library of Congress, https://aj.sunback.homes/item/2011657557/.

MLA citation style:

Costinot, Arnaud, et al. A Theory of Capital Controls as Dynamic Terms-Of-Trade Manipulation. Cambridge, MA: National Bureau of Economic Research, 2011. Pdf. Retrieved from the Library of Congress, <aj.sunback.homes/item/2011657557/>.