We use changes in Brazil's tax on capital inflows from 2006 to 2011 to test for direct portfolio effects and externalities from capital controls on investor portfolios. The analysis is structured based on information from investor interviews. We find that an increase in Brazil's tax on foreign...

Are capital controls and macroprudential measures successful in achieving their objectives? Assessing their effectiveness is complicated by selection bias and endogeneity; countries which change their capital-flow management measures (CFMs) often share specific characteristics and are responding...

This paper uses a “trendy” approach to understand UK inflation dynamics. It focuses on the time series to isolate a low‐frequency and slow moving component of inflation (the trend) from deviations around this trend. We find that this slow‐moving trend explains a substantial share of UK...