Capital Controls, Exchange Rate Volatility, and the Risk Premium

Michael Frenkel and Georg Stadtmann

Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, 2004, vol. 124, issue 3, 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.

JEL-codes: F32 F41 (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aeq:aeqsjb:v124_y2004_i3_q3_p371-386

Ordering information: This journal article can be ordered from
http://www.duncker-h ... llersjahrbuch-1.html

Access Statistics for this article

Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften is currently edited by Gert G. Wagner and Joachim Wagner

More articles in Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften from Duncker & Humblot, Berlin
Bibliographic data for series maintained by Gabriele Freudenmann ( this e-mail address is bad, please contact ).