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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.


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A YouGov survey for international aid group Oxfam found 53 percent support for the so-called Tobin tax put forward by Prime Minister Gordon Brown at a G20 meeting in Scotland earlier this month, with 28 percent opposed.
Critics argue that measures such as the so-called Tobin tax - a flat tax on currency transactions named after the Nobel Prize laureate James Tobin - would just dry up world financial flows.
Supporters of measures such as a so-called Tobin tax _ a flat tax on currency transactions named after the Nobel Prize laureate James Tobin _ say the money would protect countries from spillovers of financial crises.
 
 
 
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