Tobin Tax Meaning Example Advantages Disadvantages
What is a Tobin Tax? Tobin Tax is a tax levied on short-term currency transactions to discourage volatility and speculation. An American macroeconomist and a Nobel Laureate, James Tobin, first proposed the Tobin tax. When the Bretton Woods exchange rate system collapsed, fixed exchange rates were replaced with a volatile floating exchange rateFloating Exchange RateThe floating exchange rate can be defined as the relative value of the currency of a country....