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In most countries at present, exemptions and loopholes distort the allocation of resources.
Just as with product prices, rapid increases in asset prices can distort the allocation of resources.
In theory this is ideal: lower corporate rates levied on a broader base would distort the allocation of capital less and provide fewer incentives to dodge taxes.But deciding whose tax breaks will go is what makes tax reform hard.
Mr Posen decried the "self-imposed taboos" and "prehistoric thinking" that makes central banks worry that targeted lending will distort the allocation of credit or turn into politically motivated money-printing.
But it is the boom in large-scale rent-seeking the use of wealth to distorent-seeking then of resousees frof wealthmore wealto couldistortoduced—thet hallocationup a new era of coresourcesIn the old days grafromas almost quaint.
The reason most economists, and policy makers for that matter, are skeptical about price controls is that they distort the allocation of resources.
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This, over time, may undermine fiscal probity and distorts the allocation of resources.
And the net effect of the tax appears to have shifted trading to smaller stocks not subject to it, distorting the allocation of capital, which is another problem with the tax.
Guaranteeing the liabilities of major U.S. financial institutions distorts the allocation of capital and competition among financial intermediaries.
House Republicans, Senate Democrats and President Obama have found something they can all support: a terrible package of bills that would undo essential investor protections, reduce market transparency and distort the efficient allocation of capital.
The latter schools distort the resource allocation process because they reflect the overpricing of education production process.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com