StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Assignment example - Three Interesting Articles about an Issue Related to Money and Capital Markets, Financial Markets, Financial Instrument

Only on StudentShare
Undergraduate
Assignment
Finance & Accounting
Pages 11 (2761 words)
This paper consists of the analysis of several papers: economists are rethinking the view that capital should not be taxed, stock Trading Is Still Falling After ’08 Crisis, Companies Maintain Debt Pace Amid Haven Trade. …

Extract of sample

The first article "Economists are rethinking the view that capital should not be taxed" relates to policy making. Taxation is one of the major tools of fiscal policy. The policy makers consider the canons of taxation put forth by Adam Smith but some markets are so complex that it is almost impossible to achieve all the objectives of these canons: There are trade-offs. 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.
...
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…
10 pages (2510 words)
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…
6 pages (1506 words)
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…
6 pages (1506 words)
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…
5 pages (1255 words)
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…
6 pages (1506 words)
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…
3 pages (753 words)
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…
9 pages (2259 words)