Through this system, about 8,500 banks and credit institutions, including their branches all over the world, are accessible. The most impressive progress, in terms of integration, has been witnessed in the euro-area bond markets. Yield differences among the government bonds of the different participants have narrowed from more than five percentage points before EMU to some 30 basis points nowadays.
Needless to say, where financial market fluctuations reflect changes in domestic macroeconomic policies that put investors at greater risk than before, the tax would be aimed at treating the symptoms rather than the cause of the problem. In all, I find the case for a tax on currency transactions completely unconvincing.