…relevance to the real world. The silly argument is that lower taxes on profits imply a lower cost of capital for firms. Investors will demand the same return net of…

by Joseph Joyce Capital Flows in a World of Low Interest Rates Interest rates in advanced economies continue to persist at historically low levels. This trend is due not only…

…global financial crisis (GFC) in a recent NBER Working Paper, “Capital Flows Waves—or Ripples? Extreme Capital Flow Movements Since the Crisis.” They update the results reported in their 2012 Journal…

by Joseph Joyce Portfolio Capital Flows to Emerging Markets amid the Pandemic Among the most notable economic responses to the COVID-19 pandemic has been the turnaround in capital flows to…

by Joseph Joyce Portfolio Capital Flows to Emerging Markets amid the Pandemic Among the most notable economic responses to the COVID-19 pandemic has been the turnaround in capital flows to…

Happy 155th Birthday to volume one of Capital! In his 1965 farewell lecture at Brandeis University, Herbert Marcuse read a long passage from the Grundrisse’s “fragment on machines” and then observed: “But Marx himself…

…purchase all that stuff, = GDP), and subtract what we consumed each year (measured by spending on consumption goods, which get consumed by definition, plus “consumption” of fixed capital —…

…do so is by taxing income from capital gains and dividends. Capital gains and dividends which are highly concentrated at the top at the same rates as wage and salary…

…(2) it performs less well than experienced cherry-pickers. In short, it would be useful if you have a shortage of labor and an excess of capital, but not—as is common…

Put all this together, and you have a classic recipe for vulnerability. Capital inflows (borrowing overseas plus foreigners coming into the local stock market) tend to keep the exchange rate…