Year: 2004
Author: Frenkel, Michael, Stadtmann, Georg
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 124 (2004), Iss. 3 : pp. 371–386
Abstract
We use the Jeanne / Rose (2002) noise trader framework in foreign exchange markets to introduce a tax on international capital flows. As such a tax exerts two effects in opposite directions, we derive the capital control level that minimizes the risk premium and show the conditions under which a zero capital control level is optimal.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.124.3.371
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 124 (2004), Iss. 3 : pp. 371–386
Published online: 2004-03
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 16