Can tax policy co-cause the crisis?
Can tax policy co-cause the crisis?

Author(s): Irena Szarowská
Subject(s): Financial Markets, Public Finances, Fiscal Politics / Budgeting
Published by: Masarykova univerzita nakladatelství
Keywords: crisis; corporate debt financing; housing; taxation of financial institutions;
Summary/Abstract: Although taxes have not generated the crisis, some aspects of tax policy may have led to increased risk-taking and indebtedness of banks, households and companies. Tax incentives may indeed the behavior of economic agents, leading them to wrong economic decisions. The aim of the paper is to review main channels through which the tax policy can affect financial markets and financial stability.

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