David Cook (Department of Economics Hong Kong University of Science & Technology Clear Water Bay Kowloon, Hong Kong, SAR, China) Michael B. Devereux (Department of Economics University of British Columbia Vancouver, British Columbia, Canada)
Additional information is available for the following
registered author(s):
In 1998 and 1999, following the East Asian financial crisis, Malaysia imposed a set of constraints and taxes on the movement of capital out of the country. Using a quantitative equilibrium model, we attempt to construct estimates of the effects of these controls on Malaysia's recovery from the crisis. The analysis relies on a model of a dependent economy with taxation on capital movements. We focus on the aftermath of a financial panic (the East Asian crisis) in which effective international interest rates rise. Capital taxation implicitly ameliorates the brunt of such a rise in the interest rate and substantially limits its real effects. This amelioration is shown to be especially significant under fixed exchange rates. Copyright (c) 2002 Center for International Development and the Massachusetts Institute of Technology.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.