A review of capital account restrictions in Chile in the 1990s /

A review of capital account restrictions in Chile in the 1990s /

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Bibliographic Details
Author / Creator:	Nadal-De Simone, Francisco.
Imprint:	[Washington, D.C.] : International Monetary Fund, Western Hemisphere Department, ©1999.
Description:	1 online resource (55 pages) : illustrations
Language:	English
Series:	IMF working paper, 2227-8885 ; WP/99/52 IMF working paper ; WP/99/52.
Subject:	Capital -- Mexico. Capital movements -- Mexico. Interest rates -- Mexico. Foreign exchange rates -- Mexico. Monetary policy -- Mexico. Capital. Capital movements. Foreign exchange rates. Interest rates. Monetary policy. Mexico.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12496750

Hidden Bibliographic Details
Other authors / contributors:	Sorsa, Piritta, 1955- International Monetary Fund. Western Hemisphere Department.
ISBN:	1451894198 9781451894196 1281961612 9781281961617 1462345999 9781462345991 1452795681 9781452795683 9786613793805 6613793809
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.
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
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
Standard no.:	10.5089/9781451894196.001

Description
Summary:	This paper examines the Chilean experience with capital controls and reviews studies on controls on capital inflows. Controls on Chile's inflows had only a temporary impact in reducing specific inflows because they were affected by avoidance. There is some evidence that controls increased interest rates and altered the composition of capital inflows. The studies, however, contain important methodological problems in measuring flows and significant econometric weaknesses, which cast doubt on the robustness of the estimates. No study has assessed the political economy of the controls. It seems premature to view the Chilean experience as supportive of controls on capital inflows.
Physical Description:	1 online resource (55 pages) : illustrations
Format:	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.
Bibliography:	Includes bibliographical references (pages 50-53).
ISBN:	1451894198 9781451894196 1281961612 9781281961617 1462345999 9781462345991 1452795681 9781452795683 9786613793805 6613793809
ISSN:	2227-8885 ;