Yuming Fu, Wenlan Qian, Bernard Yeung, 07 November 2013

Financial transaction taxes are designed to raise revenue and stabilise financial markets, but their effect on market volatility is controversial. This column presents evidence from the sudden reintroduction of stamp duty on new housing projects in Singapore. Overall trading volume declined while volatility increased. These effects were strongest for previously underpriced projects, consistent with the hypothesis that informed speculators were more strongly discouraged by the tax than noise traders. This suggests that financial transaction taxes may reduce the informativeness of asset prices.

Donato Masciandaro, Francesco Passarelli, 11 January 2012

Italy’s prime minister, Mario Monti, is the latest in a growing line of senior public figures to support the idea of a financial transaction tax - also known as a Tobin tax or Robin Hood tax. Rather than give a case for or against, this column looks at what the realistic options are and asks whether they will be better for Europe, or worse.

Thorsten Beck, 25 October 2011

For better or worse, banking is back in the headlines. From the desperate efforts of crisis-struck Eurozone governments to the Occupy Wall Street movement currently spreading across the globe, the future of banking is hotly debated. This VoxEU.org eBook presents a collection of essays by leading European and American economists that discuss both immediate solutions to the on-going financial crisis and medium- to long-term regulatory reforms.

Thorsten Beck, Harry Huizinga, 25 October 2011

New taxes on banks are likely. The European Commission has proposed a financial transaction tax and a financial activities tax. This column evaluates those proposals and identifies other potential taxation mechanisms the EC has overlooked. It says that the proposed measures are poorly suited to curb excessively risky trading and eliminate undertaxation of the financial sector.

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