The 2008 Financial Crisis and Taxation Policy

46 Pages Posted: 8 Feb 2010

See all articles by Thomas Hemmelgarn

Thomas Hemmelgarn

European Commission

Gaëtan Nicodème

Université Libre de Bruxelles (ULB) - Solvay Brussels School of Economics and Management; CEPR and CESifo The views expressed in the article are those of the author and should not be attributed to the European Commission.

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Date Written: January 2010

Abstract

The 2008 financial crisis is the worst economic crisis since the Great Depression of 1929. It has been characterised by a housing bubble in a context of rapid credit expansion, high risk-taking and exacerbated financial leverage, leading to deleveraging and credit crunch when the bubble burst. This paper discusses the interactions between tax policy and the financial crisis. In particular, it reviews the existing evidence on the links between taxes and many characteristics of the crisis. Finally, it examines some possible future tax options to prevent such crises.

Keywords: financial crisis, tax policy, taxation, fiscal stimulus, financial transaction tax, property tax

JEL Classification: E62, F21, F30, G10, H20, H30, H50, H60

Suggested Citation

Hemmelgarn, Thomas and Nicodeme, Gaetan, The 2008 Financial Crisis and Taxation Policy (January 2010). CESifo Working Paper Series No. 2932, Available at SSRN: https://ssrn.com/abstract=1546973

Thomas Hemmelgarn

European Commission ( email )

J-79 05/230
Brussels, Brussels B-1049
Belgium

HOME PAGE: http://https://ec.europa.eu/taxation_customs/business/economic-analysis-taxation_en

Gaetan Nicodeme (Contact Author)

Université Libre de Bruxelles (ULB) - Solvay Brussels School of Economics and Management ( email )

50 Avenue Roosevelt
Brussels 1050
Belgium

CEPR and CESifo The views expressed in the article are those of the author and should not be attributed to the European Commission.

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