Excessive volatility in capital flows
Subtitle: a Pigouvian taxation approach
By: Olivier Jeanne, Anton Korinek
Contributors: Korinek, Anton; National Bureau of Economic Research
Series: NBER working paper series -- working paper 15927; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 15927.
Publisher: National Bureau of Economic Research
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "This paper analyzes prudential controls on capital flows to emerging markets from the perspective of a Pigouvian tax that addresses externalities associated with the deleveraging cycle.  It presents a model in which restricting capital inflows during boom times reduces the potential outflows during busts.  This mitigates the feedback effects of deleveraging episodes, when tightening financial constraints on borrowers and collapsing prices for collateral assets have mutually reinforcing effects.  In our model, capital controls reduce macroeconomic volatility and increase standard measures of consumer welfare"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 5/6/2010.

Includes bibliographical references.

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