Economics of Taxation

QE – Our take on the Bell Curve effect

Making sense of the distribution and lag effects Let us explain the problem or rather challenge of choosing between Quantitative Easing (QE) and an Interest Rate reduction to stimulate economic activity, with reference to the Bell Curve diagramme above: There are two major factors at play here: Distribution Time With a bout of QE, the effect … Continue reading QE – Our take on the Bell Curve effect

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There are in essence only two ways of taxing citizens: A Tax on Stock (Wealth) A Tax on Flows (Income or consumption) Within these two tax methodologies are hidden the minutiae of the tax regime system, but at a fundamental level, any tax raising authority has to look at these two options / methodologies available to … Continue reading Economics of Taxation