As Alaska works to balance the state budget, one thing is certain: We will all have less money in our wallets. The scale of our deficit means we are likely to see both PFD reductions and new taxes. While the governor has proposed an income tax, a sales tax may a better alternative for Alaska. …
Well-structured sales tax does more for Alaska than income tax Read More »
Ill-considered regulation regarding algorithmic trading will adversely affect the ability of legitimate market participants to contribute to liquidity, price discovery, narrow spreads, and low trading costs. The CFTC shares with market participants a growing interest in algorithmic trading and its potential effects on the markets. Rather than working with market participants cooperatively, the Commission proposes …
My latest from Alaska Dispatch News: As our legislators gather in Juneau to consider Alaska’s budget and how to bridge the billions of dollars of shortfall between state income and spending, there are a few key points I would like them to keep in mind. I have twice listened to presentations on the various budget …
Occam’s razor can cut Alaska’s budget problems to the bone Read More »
Much to the disappointment of many of my friends and readers, I tend to be a rational person. I don’t panic at the latest media or twitter hype. As long as I’m not in danger of a head-on collision requiring immediate action, I like to think about things a bit before I draw any conclusions. …
Life is weird sometimes. I had a pretty great week last week. I got to go to Chicago early in the week to speak at a conference on high-frequency and algorithmic trading and meet a lot of interesting–and frighteningly smart–people. I always enjoy getting my nerd on with other academics and policy wonks especially when …
…and then one morning you wake up and you’re a reference on Wikipedia Read More »
Every year I attend a major economics conference to geek out with and learn from a significant collection of global economists. While just breathing the air at such an event can be inspiring, talking to people often leads to sheer terror about the future of our national and global economy. Last year’s event was no …
The President’s recent visit to Alaska was in many ways controversial, but there was one positive aspect to it: It has inspired me to start blogging again. While I realize this excites some, frightens others, and disinterests most, there were so many things I wanted to blog about during the President’s visit, that I had …
The Positive Side of The President’s Visit to Alaska Read More »
My doctor of many years decided he’d rather spend his days hiking than playing ‘identify this rash’ twelve times a day and retired a few months ago at the age of 71. This left me, for the second time in my life, with the reluctant task of replacing a retired doctor. I hate finding new …
What motivates countries to discourage HFT? “While there are several empirically demonstrated benefits of high-frequency trading, including improved liquidity and reduced transaction costs, the current arguments against HFT are largely qualitative in nature. With that in mind, what are the drivers behind global HFT regulation, and do they suggest a market failure attributable to HFT?” …
HFT Regulation Requires Attention to Motives and Consequences Read More »
Motivations, Market Failures, and Alternative Outcomes “Recent market events like the “flash crash” of 2010, algorithmic failures at Knight Capital, and the release of Michael Lewis’s book Flash Boys (2014)—with his claims that markets are “rigged”—have heightened scrutiny of high-frequency trading (HFT) and increased demands for more aggressive regulation. However, HFT has several empirically demonstrated benefits, and the …
