How Effective is the Tobin Tax in Coping with Financial Volatility?

Muammer Erdoğdu () and Hale Balseven ()
Additional contact information
Hale Balseven: Marmara University

Anadolu University Journal of Social Sciences, 2006, vol. 6, issue 1, 107-128

Abstract: The last two decades have witnessed increasingly frequent and severe financial crises that many related to short-term speculation. Consequently, James Tobin’s proposition of a small tax on cross-border currency transactions to reduce such speculation has featured prominently in the discussions on the future of the international financial system. Opponents claim that such a tax can easily be circumvented and would not be effective. This paper scrutinizes these claims in the light of recent refinements made in the literature to make an assessment for the Tobin tax’s effectiveness in coping with financial volatility. Evaluation of the paper suggests that such a tax, indeed, would not only be effective in reducing financial volatility but also technically feasible and relatively easy to apply.

Keywords: Globalization; Short-Term Capital Movements; Tobin Tax. (search for similar items in EconPapers)
JEL-codes: E44 F32 H27 (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.anadolu.edu.tr/arastirma/hakemli_dergil ... 2006-1/sos_bil.6.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:and:journl:v:6:y:2006:i:1:p:107-128

Access Statistics for this article

Anadolu University Journal of Social Sciences is currently edited by Ramazan Geylan

More articles in Anadolu University Journal of Social Sciences from Anadolu University Contact information at EDIRC.
Bibliographic data for series maintained by Social Sciences Institute ( this e-mail address is bad, please contact ).