Excessive Volatility in Capital Flows: A Pigouvian Taxation Approach
---- Acknowledgements -----
This paper was prepared for the Papers and Proceedings of the 2010 AEA Meetings. The authors would like to thank Nobuhiro Kiyotaki as well
as participants at the 2010 AEA Meetings for helpful comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.