Contributions

  • Drazen, Allan. - Contributor
  • National Bureau of Economic Research. - Contributor

Publication

1996 - National Bureau of Economic Research, Cambridge, MA, Massachusetts

Language

English

Word Count

7,250 words, Guess

Page Count

29 pages

Identifiers

Description

"This paper presents a model in which a government's current capital controls policy signals future policies. Controls on capital outflows evolve in response to news on technology, contingent on government attitudes toward taxation of capital. When there is uncertainty over government types, a policy of liberal capital outflows sends a positive signal that may trigger a capital inflow. This prediction is consistent with the experience of several countries that have recently liberalized their capital accounts"--Federal Reserve Bank of New York web site.

Subjects

Series Statement

  • NBER working paper series -- no. 5725
  • Working paper series (National Bureau of Economic Research) -- working paper no. 5725.

Links

Other Editions

  • Capital account liberalization as a signalNational Bureau of Economic Research1996-01-01

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