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Title: |
The Fisher Hypothesis, International Capital Markets and Taxes on
Nominal Capital Gains |
| Author: |
Callier,
Philippe |
| Author
Affiliation: |
Concordia U &
World Bank |
| Source: |
International Economic Journal, Spring 1990, v. 4, no. 1, pp. 91-95 |
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Publication Date: |
Spring 1990 |
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Abstract: |
The paper extends to the closed economy
the framework devised by Hansson and Stuart (1986) to analyze the
interaction of inflation and taxation on the nominal rate of interest in
a financially open economy. The paper generalizes Hansson and Stuart and
shows that their finding of a possible non-neutrality of inflation when
international capital flows are introduced hinges upon the tax treatment
of nominal capital gains, not specifically on whether the economy is
financially closed or open. |
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