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Financial transactions taxes have recently gained attention as a possible means to influence the behavior of financial markets and to reduce destabilizing capital flows. One variation is a tax on all foreign currency conversions, often termed a “Tobin tax.” This paper suggests that these...
Persistent link: https://www.econbiz.de/10014398239
The use of collateral has become one of the most widespread risk mitigation techniques. While it brings stabilizing effects to the individual lender we argue that it may exacerbate systemic risk through margin call activation. We show how a liquidity shock to the cash lender may propagate as a...
Persistent link: https://www.econbiz.de/10014397334
Persistent link: https://www.econbiz.de/10009486194
In reaction to the recent financial crisis, increased attention has recently been given to financial transaction taxes (FTTs) as a means of (1) raising revenue for a variety of possible purposes and/or (2) helping to curb financial market excesses. This paper reviews existing theory and evidence...
Persistent link: https://www.econbiz.de/10014402205
Financial network analysis is used to provide firm level bottom-up holistic visualizations of interconnections of financial obligations in global OTC derivatives markets. This helps to identify Systemically Important Financial Intermediaries (SIFIs), analyse the nature of contagion propagation,...
Persistent link: https://www.econbiz.de/10014395549
This paper examines the relationship between financial regulation and the current account in an intertemporal model of … the current account where financial regulation affects the current account through liquidity constraints. Greater … tested with an interacted panel VAR model where the coefficients are allowed to vary with the degree of financial regulation …
Persistent link: https://www.econbiz.de/10014396600
Persistent link: https://www.econbiz.de/10009425656
Whether and to what extent tougher bank regulation weighs on economic growth is an open empirical question. Using data …
Persistent link: https://www.econbiz.de/10012252032
This paper discusses issues in calibrating the countercyclical capital buffer (CCB) based on a sample of EU countries. It argues that the main indicator for buffer decisions under the Basel III framework, the credit-to-GDP gap, does not always work best in terms of covering bank loan losses that...
Persistent link: https://www.econbiz.de/10012019861
This paper argues that securities transaction taxes ""throw sand"" not in the wheels, but into the engine of financial markets where the transformation of latent demands into realized transactions takes place. The paper considers the impact of transaction taxes on financial markets in the...
Persistent link: https://www.econbiz.de/10014403612