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The Tobin Tax and the Regulation of Capital Movements

Author

Listed:
  • Suzanne de Brunhoff
  • Bruno Jetin

    (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique)

Abstract

The adoption of the Tobin tax would be an important political act, a break both with the neo-liberal practices which accompany economic globalisation, and with the fatalism which goes along with them. This idea assumes that the level of co-operation which exists between the nations of the world goes well beyond the narrow framework of G3 or G7 summit meetings. The Tobin tax implies that all governments would have to act within their own financial sphere so as to help control the short-term movement of capital. This would ease the pressure on emerging countries, whose own currencies depend on the major currencies. Moreover, there would also be an easing in the level of commercial and financial competition between the industrialised capitalist countries, as such conflicts often include disagreements over current exchange rates. This paper undertakes a further analysis of the Tobin tax, rebuttes the usual criticisms of this idea by certain so-called experts, and shows its merits and limitations.

Suggested Citation

  • Suzanne de Brunhoff & Bruno Jetin, 2000. "The Tobin Tax and the Regulation of Capital Movements," Post-Print halshs-03212812, HAL.
    • Handle: RePEc:hal:journl:halshs-03212812
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03212812
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    File URL: https://shs.hal.science/halshs-03212812/document
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    References listed on IDEAS

    as
    1. James Tobin, 1978. "A Proposal for International Monetary Reform," Eastern Economic Journal, Eastern Economic Association, vol. 4(3-4), pages 153-159, Jul/Oct.
    2. Jeffrey Frankel., 1995. "How Well Do Foreign Exchange Markets Function: Might a Tobin Tax Help?," Center for International and Development Economics Research (CIDER) Working Papers C95-058, University of California at Berkeley.
    3. Mr. P. Bernd Spahn, 1995. "International Financial Flows and Transactions Taxes: Survey and Options," IMF Working Papers 1995/060, International Monetary Fund.
    4. Arestis, Philip & Sawyer, Malcolm, 1997. "How Many Cheers for the Tobin Transactions Tax?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 21(6), pages 753-768, November.
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    Cited by:

    1. Haberer, Markus, 2003. "Some Criticism of the Tobin Tax," CoFE Discussion Papers 03/01, University of Konstanz, Center of Finance and Econometrics (CoFE).

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