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 ?
Although the FTT is connected to and understood as a Tobin tax in most cases, several different tax instruments are generally referred to as "financial transaction taxes." Matheson (2011) defines a securities transaction tax (STT) as a tax on trades in all or certain types of securities (equity, debt and their derivatives).
The Chinese authorities are considering a "Tobin tax" on financial transactions to deter speculative capital flows, said Guan Tao, head of the department of international payments at the State Administration of Foreign Exchange (SAFE).
French President Francois Hollande supported the so-called Tobin tax in his presidential election campaign, but has seen his Finance Minister, Pierre Moscovici, break ranks on the issue.
A financial transactions tax, or "Tobin Tax" throughout the EU, although set at a very low rate, would reduce risky speculation and the problems it causes and raise enough revenue to address issues such as youth unemployment.
(SeeNews) - May 10, 2013 - If the Tobin tax on financial transaction is introduced in its currently proposed form, it would cost Belgian bank Dexia EUR 700 million (USD 910.6m), chairman Robert de Metz and CEO Karel De Boeck warned at a news conference.
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.S.
But what about the much-heralded "Tobin tax", introduced on 1 August?
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.