Tobin tax


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Tobin Tax

A proposed tax on foreign exchange transactions. The tax is intended to reduce excessive speculation on currencies by making it more expensive. First proposed after the collapse of the Bretton Woods system, the Tobin tax is often re-proposed after major currency crises because speculation can cause unsustainable rises and crashes in foreign exchange rates.

Tobin tax

a proposed international TAX on all transactions in the FOREIGN EXCHANGE MARKET. Tobin, who advocated this tax, argued that it would discourage destabilizing speculation and make foreign exchange markets less volatile. See SPECULATOR.
References in periodicals archive ?
We will use more market-based means to manage (capital flows) and there are many tools that are under consideration, including a Tobin tax," he said.
If the Tobin tax undermines the group, this will cost the two countries much more than the tax can bring in, De Metz and De Boeck stressed.
But Labour bigwigs believe a Tobin tax would be a vote winner.
CAMBRIDGE: European leaders are seriously considering a Tobin tax, which would put a small levy on financial transactions, thereby dampening trading.
While there are plenty of ideas for sources of funding--including carbon credits, taxes on bunker and aviation fuels, and even a "Robin Hood" or Tobin Tax on financial transactions--political will is sparse.
A small Tobin tax on financial transactions can raise both raise funds and control speculation.
financial transactions, known as the Tobin Tax, in an effort to regulate the
Finally, while many in the financial community have dismissed the Tobin Tax as an ineffectual method for correcting some of the system's excesses, Andrew Sheng makes the argument that a globally applied Tobin Tax, which has become regarded as a solution in the European Union since the book's publication, would produce a number of beneficial externalities for the global economy.
French leaders have proposed a version of the levy, known as a Tobin Tax, since 2001.
I am on record at the TUC and Coventry Trades Council of supporting the Tobin Tax, the Robin Hood Tax and collecting the pounds 120 billion the very rich owe the nation.
These are all sensible reform steps, with the possible exception of the Tobin tax proposal.