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

摘要

In this study, we analyze the impact in Brazil of a tax on external capital flows called "Imposto Sobre Operacoes 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.