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In a world of mobile capital, corporate tax rates matter.
That is a less useful guide in a world of increasingly mobile capital.
In this respect, what preferences policy makers attribute to the mobile capital are crucial.
States increasingly enter into competition to attract or keep mobile capital in the locality.
Cities can be clean, unpolluted and uncongested, attracting mobile capital, talent and creativity.
Caribbean havens in Britain's sphere of influence were particularly active, using their suzerainty to write laws that would attract mobile capital.
Similar(17)
Fluid capital, mobile communications, and an expanding global middle class all contribute to the global tilt, but the human factor is also a powerful driver.
Indeed, the global economy has become so interconnected, and world markets so powerful, that there appears to be little scope for national policies to disrupt hyper-mobile capital flows.
Being Canadian presumably helped Mr Mundell to break out of that mind-set.In any event, economists' intuitions are nowadays shaped by the standard open-economy, mobile-capital paradigm the one that Mr Mundell established.
In an era of mobile global capital, that will require international cooperation, a painstaking process.
Neo-liberal urban policies are engendered by the nexus between mobile investment capital, inter-city competition, and public entrepreneurialism.
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