Article of U. Peiris in the International Journal of Central Banking

Congratulations to ICEF assistant professor Udara Peiris on the adoption of his paper “Global Imbalances and Taxing Capital Flows" (joint with Charles Goodhart and Dimitri Tsomocos) for publication in the International Journal of Central Banking, one of the top journals in central banking and policy circles >>

Congratulations to ICEF assistant professor Udara Peiris on the adoption of his paper “Global Imbalances and Taxing Capital Flows" (joint with Charles Goodhart and Dimitrios Tsomocos) for publication in the International Journal of Central Banking, one of the top journals in central banking and policy circles.

Abstract:
We study a monetary economy with two large open economies displaying net real and financial flows. If default on cross-border loans is possible, taxing financial flows can reduce its negative consequences. In doing so it can improve welfare unilaterally, in some cases in a Pareto sense, via altering the terms of trade and reducing the costs of such default.