Essay on Taxation Policies That Affected Financial Innovation
Section 5 is the empirical work
Section 6 concludes theoretical and empirical work, that there are a lot of underlying causes of financial innovation and one of them is taxation. Taxation and financial regulation have a lot of intersections wit financial innovation and according to White (2000)” Financial regulation has had and will surely continue to have a role in shaping financial innovation. In turn, innovation will surely continue to pose challenges for regulation”.
First known innovations in financial sector came from Mesopotamia. With fast growing urbanization emerged a need in serious finance. Urbanization has lead to invention of accounting technology, financial technology and recording technology. These inventions helped to keep account of people’s obligations. The same time contracts, loans (like mortgages) and property rights were developed. In 640-630 BC appeared first coins in Lydia, manufactured from a natural alloy of silver and gold.
Next significant financial innovations occurred in China. One of them was the invention of paper money which allowed produce and…