Hidden Bibliographic Details
| Other authors / contributors: | Sorsa, Piritta, 1955-
International Monetary Fund. Western Hemisphere Department.
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| ISBN: | 1451894198
9781451894196
1281961612
9781281961617
1462345999
9781462345991
1452795681
9781452795683
9786613793805
6613793809
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| Notes: | Includes bibliographical references (pages 50-53).
Restrictions unspecified
Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
English.
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
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| Summary: | Nearly two decades ago, Tobin aired in his presidential address to the Eastern Economic Association the idea of taxing international capital flows to reduce exchange rate volatility and to preserve and promote the autonomy of national macroeconomic policy.2 The crises of the European Monetary System in 1992 and 1993, of Mexico in 1994-95 together with the recent Asian crisis, have prompted calls from policy making circles and from some members of the economic profession to control cross-country capital flows.3 The renewed interest in taxing capital flows follows from growing preoccupation on the costs and benefits of capital flows and of government policies designed to limit or modify their composition. The Bank for International Settlements (BIS) indicates that more than 40 percent of all foreign exchange transactions have a maturity of two days or less with about 80 percent of all foreign exchange transactions involving "round trips" of seven days or less. Many observers, e.g., Eichengreen and Wyploz as well as Frankel (1996), believe that much of that trade has little to do with "fundamentals," is destabilizing, and reduces welfare.4 Therefore, following that argument, a Tobin tax that curbs welfare-reducing short-term capital flows without affecting welfare-enhancing long-term flows, should represent a Pareto improvement
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| Other form: | Print version: Nadal-De Simone, Francisco. Review of capital account restrictions in Chile in the 1990s. [Washington, D.C.] : International Monetary Fund, Western Hemisphere Department, ©1999
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| Standard no.: | 10.5089/9781451894196.001
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