Should We Throw Sand in the Gears of Financial Markets?
Hakkio, Craig S., Economic Review - Federal Reserve Bank of Kansas City
The volatility of financial markets in recent years has led to increased concern. As trading of financial assets on organized exchanges and over-the-counter markets has grown, events such as the 1987 stock market crash and the 1992 Exchange Rate Mechanism crisis in Europe have raised fundamental questions about the role these markets play in the economy. In particular, there is concern that much of the increased trading of financial assets is of a short-term, speculative nature that adds little value to the intermediation process and in the extreme case may distort the efficient functioning of financial markets.
This view has led some economists to advocate a securities …
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Publication information: Article title: Should We Throw Sand in the Gears of Financial Markets?. Contributors: Hakkio, Craig S. - Author. Journal title: Economic Review - Federal Reserve Bank of Kansas City. Volume: 79. Issue: 2 Publication date: Second Quarter 1994. Page number: 17+. © Federal Reserve Bank of Kansas City Fourth Quarter 1996. Provided by ProQuest LLC. All Rights Reserved.
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