FTT – the answer to all problems?

 

Assessing the role of financial transaction taxes (FTT) in financing was the subject of several recent papers, supporting or refusing the idea of an european taxation of financial transactions.

While the DIW assumes that the introduction of an FTT could lead to more sustainability in financial markets, the IEA is refusing the idea by pointing out the ineffectiveness on reducing volatility and increasing total revenue. The IMF working paper on the other hand pointed out that introducing an FTT could be an appropriate measure for raising revenue. But the study identified it as an inefficient instrument for regulating financail markets and preventing bubbles.

Besides these papers, studies published by FTT-supporting organisations like TUC or the Robin Hood Campaign received some public attention aswell.

DIW-paper on FTT’s impact on Financial Markets:
Financial Transaction Tax Contributes to More Sustainability in Financial Markets (diw.de)

Paper of the Institute of Economical affairs on negative consequences of an FTT-introduction:

The case against a financial transactions tax
(iea.org.uk)

IMF working paper on Taxing Financial Transactions:
Taxing Financial Transactions: Issues and Evidence
(IMF)

Campaign of FTT-supporters:
Everything you need to know (therobinhoodtax.org)

More opinions:
Why critics are wrong about a financial-transaction tax
(european voice)
Financial Transaction tax: No surrogates, please
(euobserver.com)

Thomas Adler

About Thomas Adler

Thomas Adler studied Philosophy & Economics and European History at the University of Bayreuth. He is interested in institutional economics, game theory, political philosophy and the history of economic thoughts.