Ieškoti

In the wake of the financial crisis, the idea of taxing financial transactions was revived. But it has not gained overwhelming support at either global or EU level so far. Therefore, 11 euro area countries have decided to move ahead on their own through enhanced cooperation. Opinions on the possible impact differ.

In 1992 Nobel Prize-winning economist James Tobin suggested a tax on currency operations 'to throw some sand in the wheels of speculation'. Interest in the proposal has now been re-kindled as governments search for 'a new international financial architecture'. A Tobin Tax would penalise short-term speculation, while leaving long-term investment relatively unaffected. But there are doubts as to whether it could ever be put into effective practice. The tax has an additional attraction, however: it ...