Taxes on transactions are always potentially damaging, as they distort the market by pushing people's decisions away from an efficient market.

As an example of a highly competitive and efficient market, he points to the buying and selling of government bonds.

This created an efficient market and relatively low energy bills.

The efficient market hypothesis, the theory that liquid markets are always right, held sway.

The efficient market hypothesis asserts that prices accurately reflect available information and investors behave rationally.