There is no evidence that an FTT would moderate market volatility ”” and attenuate sudden shifts of mood on financial markets.
A recent report by Anna Pomeranets from the Bank of Canada concluded that there have been instances when an FTT led to an increase in volatility ”” most significantly on the New York Stock Exchange and the American Stock Exchange, between 1932 and 1981, where increases in the FTT were associated with rising volatility, increased bid-ask spreads, and lower trading volumes.
Similarly, the idea that capital is under-taxed in current tax regimes is mistaken.
Read More At Investor’s Business Daily: http://news.investors.com/ibd-editorials-viewpoint/052913-658027-financial-transaction-tax-in-europe-will-not-raise-much-money-and-may-hurt-growth.htm#ixzz2UmJX6SiT
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(IBD) Financial Transactions Tax Will Not Make Markets More Stable And Might Hurt Economic Growth
There is no evidence that an FTT would moderate market volatility ”” and attenuate sudden shifts of mood on financial markets.
A recent report by Anna Pomeranets from the Bank of Canada concluded that there have been instances when an FTT led to an increase in volatility ”” most significantly on the New York Stock Exchange and the American Stock Exchange, between 1932 and 1981, where increases in the FTT were associated with rising volatility, increased bid-ask spreads, and lower trading volumes.
Similarly, the idea that capital is under-taxed in current tax regimes is mistaken.
Read More At Investor’s Business Daily: http://news.investors.com/ibd-editorials-viewpoint/052913-658027-financial-transaction-tax-in-europe-will-not-raise-much-money-and-may-hurt-growth.htm#ixzz2UmJX6SiT
Follow us: @IBDinvestors on Twitter | InvestorsBusinessDaily on Facebook
Read it all.