Should Australia tax the carry trade speculators?

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Find above an interesting video from The Australian featuring John Abernethy from Clime Asset management.

Abernethy argues that Australia should tax short-term speculative currency inflows – the so-called carry traders – in order to slow inflows and put downward pressure on the dollar. Such a move, he argues, would greatly assist the non-mining tradable economy and reduce the incidence of Dutch Disease.

Sounds interesting.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.