Global Economy

HFT

HFT Regulation Requires Attention to Motives and Consequences

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What motivates countries to discourage HFT? “While there are several empirically demonstrated benefits of high-frequency trading, including improved liquidity and reduced transaction costs, the current arguments against HFT are largely qualitative in nature. With that in mind, what are the drivers behind global HFT regulation, and do they suggest a market failure attributable to HFT?” …

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HFT Regulation

An Analysis of Global HFT Regulation

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Motivations, Market Failures, and Alternative Outcomes “Recent market events like the “flash crash” of 2010, algorithmic failures at Knight Capital, and the release of Michael Lewis’s book Flash Boys (2014)—with his claims that markets are “rigged”—have heightened scrutiny of high-frequency trading (HFT) and increased demands for more aggressive regulation. However, HFT has several empirically demonstrated benefits, and the …

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tax

Offshore Corporate Tax Havens Shift Burden to Individual Tax Payers

2 Comments / Business, Global Economy, Politics / By

“…tax haven abusers force other Americans to shoulder their tax burden.” U.S. PIRG, an organization I don’t generally have much in common with, published an interesting and informative report on offshore corporate tax havens. While I don’t necessarily agree with the causes of the problem the author suggests, I agree with the effects. From U.S. …

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You Can’t Keep Your Money Because It Belongs To The Government

7 Comments / Behavioral Economics, Economy, Financial Markets, Global Economy, Politics / By

If you think you earn your money, you are wrong. As I have been watching the debates over the debt ceiling, the fiscal cliff, and taxation I am reminded of one assumption about money the government makes (often unconsciously) that those of us who think we should be allowed to keep the money we have …

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The Myth of Austerity

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Authored by Philipp Bagus via the Ludwig von Mises Institute, “Many politicians and commentators such as Paul Krugman claim that Europe’s problem is austerity, i.e., there is insufficient government spending. The common argument goes like this: Due to a reduction of government spending, there is insufficient demand in the economy leading to unemployment. The unemployment …

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Why Krugman and Stiglitz Are Wrong About Government Spending

13 Comments / Economy, Global Economy, Politics / By

This is not the government spending of WWII By Holly A. Bell On October 23, 2012, the Institute for New Economic Thinking (INET) hosted an economics discussion with Paul Krugman and Joseph Stiglitz. The moderator of the discussion asked the Nobel Memorial Prize in Economic Sciences winning economists what the solution to our current recession …

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The Quest for Certainty

Leave a Comment / Behavioral Economics, Decision Making, Economy, Financial Markets, Global Economy / By

[repostus hash=2b346fd31b93007a0e56b9f5ca87ae96 title=The+Quest+for+Certainty host=Market+Shadows short=1rjnE snip=The+Quest+for+Certainty+%E2%80%9CAs+far+as+the+laws+of+mathematics+refer+to+reality%2C+they+are+not+certain%3B+and+as+far+as+they+are+certain%2C+they+do+not+refer+to+reality.%E2%80%9D+%E2%80%93+Albert+Einstein+%E2%80%9CTo+trace+something+unknown+back+to+something+known+is+alleviating%2C+soothing%2C+gratifying+and+gives+moreover+a+feeling%26hellip%3B thumb=3138651 jump=5] Return to Home Page Certainty image courtesy of hin255

Will Quantitative Easing Cause Asset Bubbles in the Developing World?

2 Comments / Economy, Financial Markets, Global Economy / By

Easing may cause developing world asset bubbles: IMF (via AFP) Monetary easing in the developed world could cause overheating and asset bubbles in emerging economies, the International Monetary Fund’s managing director said in Tokyo on Sunday. “Accommodative monetary policies… could strain the capacity of those economies to absorb the potentially large flows… capital flows, monetary …

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