Government, taxes and banking crises

Augusto Hasman (), Ángel L. López and Margarita SamartIín

Journal of Banking & Finance, 2011, vol. 35, issue 10, 2761-2770

Abstract: This paper analyzes the effectiveness of different government policies to prevent the emergence of banking crises. In particular, we study the impact on welfare of using taxpayers money to recapitalize banks, government injection of money into the banking system through credit lines, the creation of a buffer and taxes on financial transactions (the Tobin tax). We illustrate the trade-off between these policies and derive policy implications.

Keywords: Banking; crises; Information; induced; bank; runs; Government; policies; Taxes (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:35:y:2011:i:10:p:2761-2770

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