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But they also have a distorting effect on asset markets.
A few at least in the Federal Reserve (and elsewhere) are becoming acutely aware that its ultra-low-interest-rate policy is having a hugely distorting effect on asset markets.
The Fed's monetary policy seems to be having a much more significant effect on asset prices than it has on the underlying economy, said Larry Kantor, head of research at Barclays.
In this case, considering the effect on asset allocation of new contributions becomes important.
With certain and constant taxes there would not be an effect on asset prices versus no taxes.
I provide conditions in stochastic discount factor language when a capital gains tax has no effect on asset prices for the case of a zero risk-free rate.
Similar(53)
Above all, as Mr King has noted, a turn in the credit cycle could have nasty effects on asset markets of all sorts.
The reduction in interest rates, at that point the eighth in 2001, was made "against the backdrop of heightened concerns and uncertainty created by the recent terrorist attacks and their potentially adverse effects on asset prices and the performance of the economy," the Fed's minutes said.
I contribute to the asset pricing literature that is especially concerned with tax effects on asset pricing.
We start with theoretical explanations for the existence of order imbalance and its effects on asset prices.
In this section, we provide an overview of the literature on order imbalance, its causes, and its effects on asset returns.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com