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 ?
Tobin Tax Introduction and Risk Analysis in the Java Simulation.
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.
A measured response to check market fluctuations would be to impose a Tobin Tax on foreign exchange currency transactions.
Widely known as a Tobin tax, after Nobel-prize winning U.
The duty, known as the Tobin tax, would mean a charge on all financial deals.
Though the Tobin tax was proposed to cover currency transactions, it is considered as more general concept related to different financial transactions (Palley, 2003).
Oxfam Scotland called on First Minister Alex Salmond to follow O'Brien's example and publicly support the Robin Hood tax, which is also known as the Tobin tax.
Mr Cruddas boasted how he had himself used a party at Woburn Abbey - a country house owned by the Duke of Bedford, a school friend of Mr Cameron - to press the PM on plans for a European-wide Tobin tax on financial transactions.
Tory group leader Andrew RT Davies said: "Giving his agreement for a Tobin Tax to be implemented without international agreement shows great naivety on his part.
CAMBRIDGE: European leaders are seriously considering a Tobin tax, which would put a small levy on financial transactions, thereby dampening trading.