We explore whether a Financial Transactions Tax (FTT) is likely to correct the market failures that have contributed to the financial crisis, to what extent FTT succeeds in raising revenues, and how the FTT compares to alternative taxes in terms of efficiency. We find little evidence that the...

We analyse the effects of financial shocks on economic development in the euro area and the Netherlands in particular. We develop VAR models that take account of feedback loops between financial-market conditions and the real economy. These feedback loops operate via the aggregated euro-area...