Tobin tax

E790040

The Tobin tax is a proposed small levy on foreign currency transactions intended to curb short-term speculation and promote financial stability.

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Statements (46)

Predicate Object
instanceOf financial transaction tax
proposed tax
appliesTo foreign currency transactions
foreign exchange transactions
facesCriticismFor implementation difficulties without global agreement
possible evasion through offshore centers
potential reduction in market liquidity
hasConceptualPrecursor Keynesian ideas on financial speculation
hasPolicyGoal dampen short-term cross-border capital movements
give national governments more monetary policy autonomy
hasProposedRate small percentage of transaction value
hasPurpose curb short-term currency speculation
discourage destabilizing capital flows
promote financial stability
reduce volatility in foreign exchange markets
hasVariant Spahn tax NERFINISHED
inspired later proposals for global financial transaction taxes
isDebatedIn global financial governance
international economics
isDesignedAs uniform global tax on currency trades
isDiscussedBy International Monetary Fund NERFINISHED
United Nations agencies NERFINISHED
isIntendedEffect generate public revenue
lengthen average holding period of currencies
raise cost of high-frequency currency trading
reduce exchange rate misalignments
isIntendedToBe revenue-neutral with respect to long-term investment
isOpposedBy many financial industry groups
some mainstream economists
isPartOfDebateOn policies to prevent financial crises
regulation of global capital flows
isRelatedTo Tobin–Spahn tax NERFINISHED
currency transaction tax
financial transaction tax
isSupportedBy some NGOs advocating for development financing
some heterodox economists
isTypeOf Pigovian tax
currency transaction tax
isUsuallyCollectedAt point of foreign exchange transaction
namedAfter James Tobin NERFINISHED
requires broad international coordination
targets short-term foreign exchange trading
speculative currency trades
wasProposedBy James Tobin NERFINISHED
wasProposedIn 1970s
wasProposedInContextOf collapse of Bretton Woods system

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Full triples — surface form annotated when it differs from this entity's canonical label.

James Tobin notableIdea Tobin tax