Tackling Instability in Financial Markets with a Panic Tax

Neil McCulloch ()

IDS Bulletin, 2011, vol. 42, issue 5, 109-113

Abstract: The motivation for much recent debate on introducing a financial transaction or ‘Tobin’ Tax is to generate revenues for public goods – this is the main aim of the ‘Robin Hood Tax’ campaign. But James Tobin first proposed his idea in order to enhance market stability. The evidence suggests that a Tobin Tax might not reduce instability. However, a Panic Tax – a simple mechanism to tax panic rather than trade – could promote stability by dampening crashes and booms and providing policy space for more orderly adjustments in the financial markets.

Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1111/idsb.2011.42.issue-5

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:wly:idsxxx:v:42:y:2011:i:5:p:109-113

Access Statistics for this article

More articles in IDS Bulletin from Blackwell Publishing
Bibliographic data for series maintained by Wiley Content Delivery ().