3 ms·
Wouldn't such a policy disincentivize transactions, at least to a degree? I thought the whole reason for the federal reserve bank's monkeying with interest rate
by korethr 10y ago
Wouldn't such a policy disincentivize transactions, at least to a degree? I thought the whole reason for the federal reserve bank's monkeying with interest rates was to keep money in motion and being used, instead of just sitting piled idle in various accounts, because the former is better. In my mind money in motion necessarily implies lots and lots of transactions. Taxing transactions seems like it would make people want to keep money in their accounts instead of using it.
- weaksauce 10y agoIt would, yes, I'd imagine. I looked up what it's called and it's the Financial transaction tax[1]. What some propose is to make it 0.3% on all transfers of money. Right now it costs $21.80 to send $1,000,000. The same payment under the new scheme would be $3,000. I have no idea what can of worms it would open up but it's an interesting thought experiment. 1. https://en.wikipedia.org/wiki/Financial_transaction_tax#United_States https://en.wikipedia.org/wiki/Financial_transaction_tax#Unit...