There seems to be no let up from the tidal wave of international legislation in the pipeline this year from both sides of the Atlantic, targeting the financial services industry. Senators Carl Levin and Kent Conrad’s newly passed Highways Tax Bill and the Foreign Account Tax Compliance Act (FATCA) are the ...
At Cayman Finance, we’ve been watching the United States presidential election carefully, and observe the disappointing, though somewhat predictable, distortion of the facts by some US politicians and media, regarding the financial services industry in Cayman.
A key component of modern economic theory is production theory. Production theory is the study of the economic process of converting inputs into outputs. Production uses resources to create goods or services that are then sold in the market, explained by the supply and demand theory.
Politicians in the U.S. have brought their campaigns to a new low by calling each other unpatriotic for using the Cayman Islands. Few of them remain fully insulated from the “Cayman benefits” - even those insulting other candidates without doing their homework.
Economists, of which I confess to be one, always create models based on a number of assumptions to explain behaviours of the markets. So far so good right? But the problem is more often than not these assumptions are beyond the realm of the possible, and due to a failure to create better models, we end up accepting the only available models and forget the assumptions on which it was built.
On 15 March, 2013, the Cayman Islands government announced its intention to sign an agreement with the United States authorities to adopt a Model 1 Intergovernmental Agreement (IGA) in response to the US Foreign Account Tax Compliance Act.