A recent Bank of Canada report went through a litany of cases, including a tax imposed by New York state from 1905 to 1981 and a Swedish tax imposed in 1984, and found that all seem to have raised volatility and reduced liquidity.
Richard Gilhooly, fixed-income strategist at TD Securities in New York, said: "Rather than calm the markets, the poorly communicated statement has significantly raised volatility and now we have to wait to see the actual outcome of G20 on the weekend".
But they have also helped usher in a period of hair-raising volatility.
In other words, higher nominal debt raises real volatility, increases financial fragility and reduces average growth.But surely, the public sector can step in and take up the slack?
A disadvantage is that it raises the volatility, which makes it lose its contents when power is disconnected, and it has limited capacity, because designed memory capacity depends only on the specific FPGA device.
Additionally, if the Fed indicates that it won't raise rates in 2016, the news should heighten volatility in the FX market.
It makes shareholders more geared, raising share-price volatility.
But the truly hair-raising volatility came in tinier increments in the bond market.
In contrast, even while suffering hair-raising volatility, the S&P 500s total return was a tiny 2%.
If you can't stand the risk of more market volatility ahead, raising some cash makes sense.
But a growing body of evidence suggests that by reducing volatility and raising much needed revenue, the overall effect would be positive," the executives wrote.
