[OPE-L:5745] Re: Alfredo's Real again

Duncan K. Foley (dkf2@columbia.edu)
Sun, 23 Nov 1997 23:46:43 -0500 (EST)

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>In a recent message, Paul C. raises several interesting policy alternatives
>for countries like Brazil.
>I am particularly interested in the taxation of capital flows. Has anyone on
>this list studied the implications of the Tobin tax, and how it may be

Duncan remarks:

I think there's substantial interest in left-center mainstream circles in
instituting some kind of capital control through taxes (sometimes referred
to as "throwing sand into the wheels of the market") even in the U.S., and
I believe that a number of countries (Chile and Switzerland, for example)
have instituted such policies from time to time, so this is not at all an
unrealistic policy. For Tobin it's an old theme: he was involved in the
"interest equalization tax" instituted by the U.S. in the 1960s to try to
control capital outflows.

Duncan K. Foley
Department of Economics
Barnard College
New York, NY 10027
fax: (212)-854-8947
e-mail: dkf2@columbia.edu