Identify Three Interesting Articles about an Issue Related to Money and Capital Markets, Financial Markets, Financial Instrument

Identify Three Interesting Articles about an Issue Related to Money and Capital Markets, Financial Markets, Financial Instrument Assignment example
Undergraduate
Assignment
Finance & Accounting
Pages 10 (2510 words)
Download 0
(Your name here) (Your instructor’s name here) (Type of assignment e.g. Test assignment) (Date of dropping the assignment) Article Analysis 1. Zero-sum debate: Economists are rethinking the view that capital should not be taxed (The Economist). This article relates to policy making…

Introduction

This article probes into the usefulness of tax on capital gains. Traditionally, taxes on capital gains have been low because of the belief that higher taxes would have an impact on growth. This article provides arguments against this view and suggests that taxing capital gains is a good idea. America’s current corporate-tax system is being blamed for the struggling economy. Currently, the tax rate on capital gains is 15% which is lower than in many countries. Since the 1970s and 1980s, many economics have believed that this tax must be made lower. Some argue that there should be no capital tax at all. Governments have to tax some part to restore equality and to fund public goods but there is an inevitable trade-off: taxes have an impact on consumption. Negative responses to taxation are harmful for the economy. Taxation has been dealing with inequalities that related to pay differences and these inequalities were addressed through taxation on labor. However, capital tax has more complicated implications because when tax affects the level of investments and savings, it has an impact on future growth and consumption. The economic sector has incessantly appealed the policy makers to cut the rate of capital tax and it was, in fact, brought down to more than half from 1950 to 1980. There is pressure for more and zero capital tax has been recommended by most economists. ...
Download paper
Not exactly what you need?

Related papers

The Economics of Money, Banking, and Financial Markets
Taking into consideration the impact of political, social and economic factors on the establishment and growth of foreign ventures, it is paramount for company directors to ensure coverage of wide areas during the risk analysis process. One of the benefits of risk analysis is that it provides directors with adequate knowhow on goods and services to offer as well as choices of location. In…
Financial Institutions & Markets - Financial Innovation
Individuals and business concerns now have a wider range of options with respect to different types of borrowing facilities available to them. However, the recent Global Financial Crisis (GFC) is argued to be the result of this financial innovation. As a result of that most of the monetary policy makers have tightened their regulatory policies and have imposed several restrictions on the financial…
Economics of Money, Banking, and Financial Markets
We will look at the role and how banks channel this money from agents who want to deposit and agents who are in need of money and want to borrow. The role of the bank is very important because they channel funds towards financing investments that are productive. Introduction Financial institutions are very essential in accelerating developments. For developments to be achieved, people have to…
Financial Markets and Institutions
The derivative market can be further sub-divided into the OTC (over the counter) market and the exchange traded derivatives market. While the former is more customized and offers tailor made innovative instruments in the later all transactions take place via exchange. The OTC market transactions are done mainly by the investment banks that heir traders or agents to market derivative instruments to…
Financial Markets
Therefore, it is considerably important that shareholders and financial directors have an excellent understanding of the financial setting in which they conduct their activities. It is important to note that a strong financial environment plays a significant role in economic expansion and prosperity. The many corporations increasing funds to finance investment expenses as well as shareholders…
Financial markets
An asset manager while creating a portfolio diversifies the total investment into an optimal mix of asset class with an aim of either to increase return or reduce risk, so as to create a balanced portfolio. Traditionally asset managers allocated a structure of 45% of assets were invested in equities, 25% in bonds, 15% in property and 15% in cash, based on the client’s need of asset classes which…
Money, Banking, and Financial Markets
In this article, I will analyze the current money neutrality and the creation of reserve without money creation as per the central banking systems. Money neutrality Numerous economics students have been taught the theory of money neutrality and its effect on how people consider the issue of monetary policy. The implications of money neutrality may be summarized as follows: in the long run, the…