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On the effectiveness of capital controls during the Great Recession: The Brazilian experience (2007–2013)

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  • Cesar Rodrigues van der Laan
  • André Moreira Cunha
  • Marcos Tadeu Caputi Lélis

Abstract

In this study, we analyze the impact in Brazil of a tax on external capital flows called “Imposto Sobre Operações Finaceiras” (IOF), by following data on a monthly basis from 2007 to 2013. Our goal is to determine whether a change in tax legislation can produce significant effects on the pattern of financial inflows from abroad. Using univariate structural models, our results show that changes in the IOF produced structural breaks on foreign portfolio investments.

Suggested Citation

  • Cesar Rodrigues van der Laan & André Moreira Cunha & Marcos Tadeu Caputi Lélis, 2017. "On the effectiveness of capital controls during the Great Recession: The Brazilian experience (2007–2013)," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 40(2), pages 203-222, April.
    • Handle: RePEc:mes:postke:v:40:y:2017:i:2:p:203-222
    DOI: 10.1080/01603477.2016.1262744
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    Cited by:

    1. Chokri Zehri, 2020. "The Domestic Impacts And Spillovers Of Capital Controls," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 65(227), pages 31-66, October –.
    2. Jongwanich, Juthathip, 2019. "Capital Account Policies in Emerging Asian Economies: Are They Effective in the 2000s?," ADB Economics Working Paper Series 578, Asian Development Bank.

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