In many ways financial secrecy - or confidentiality - is a “product” or “service” which has value and can be traded in markets around the world. These markets exhibit an unusual perspective on demand and supply – one that is focused on the prevention of financial disclosure. The “demand” for financial secrecy is based on the fear of damage potentially caused by unwanted information leakage. Secrecy “supply” is based on the availability and effectiveness of financial instruments, techniques, and sometimes national policies that can be used to impede financial disclosure. The “price” of these techniques for people seeking secrecy can be identified as the excess costs and incremental risks that accompany financial secrecy compared to financial affairs that lack meaningful protection from unwanted financial disclosure. There are plenty of examples of the economics of financial secrecy - ranging from tax evasion, commercial smuggling, the global drug trade, illicit weapons of war, evading currency controls, undermining trade and financial embargos, blacklists, and more. They underlie a never- ending global cat-and-mouse game, often with serious economic and social consequences. There are plenty of negative externalities originating in the financial secrecy “industry,” and so there are vigorous domestic and international efforts to pursue money laundering and similar tools of the trade. But sometimes financial secrecy can also avoid a lot of personal and social damage. The structure-conduct-performance model of industrial organization provides some useful insights on global financial secrecy. #financial #secrecy #taxhaven Copyright ⓒ Maeil Business Newspaper. All rights reserved. Unauthorized reproduction, redistribution, and use (including for AI learning) are prohibited.