Nonlinear Capital Flow Tax: Capital Flow Management and Financial Crisis Prevention in China
Publication in refereed journal

香港中文大學研究人員

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摘要How to promote capital account liberalization while preventing financial crises is a challenging task for policymakers. This study proposes a nonlinear (progressive) capital flow tax as a solution. We first demonstrate that the collateral requirement of international borrowing can give rise to multiple equilibria and self‐fulfilling financial crises. We then show that the crisis equilibrium characterized by large exchange rate depreciation, capital flight and welfare loss can be eliminated by imposing a nonlinear (progressive) tax scheme on capital outflows with the marginal tax rate increasing with the size of individual capital outflows. The implementation of such a tax scheme in China is also discussed.
著者Jiandong Ju, Li Li, Guangyu Nie, Kang Shi, Shang-jin Wei
期刊名稱China and World Economy
出版年份2019
月份7
卷號27
期次4
頁次1 - 28
國際標準期刊號1671-2234
語言美式英語

上次更新時間 2021-11-01 於 23:54