Using tax policy to curb speculative short-term trading

  title={Using tax policy to curb speculative short-term trading},
  author={J. E. Stiglitz},
  journal={Journal of Financial Services Research},
  • J. Stiglitz
  • Published 1 December 1989
  • Economics
  • Journal of Financial Services Research
This article addresses the question of the desirability of a tax on transactions in the securities industry. Many of the other major industrialized economies impose such a tax. In Japan, for instance, the tax raises $12 billion a year (see Roll, 1989). I propose to consider the consequences of a tax at a relatively low rate, say .5 percent to 1 percent of the value of the transactions.1 


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