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|dc.description.abstract||High volatility and enormous international capital flows are negative effects of theglobalization of financial markets that can lead to financial crises like those of the1990s. The Tobin tax often has been put forward as a measure to diminish globalizationrisks since it is claimed to discourage short-term speculation. The arguments of the proponentsof this transactions tax are based on the assumption that (i) short-term trading isdestabilizing and speculative and causes the volatility to increase, (ii) the Tobin tax doesdiscourage this speculation and (iii) the Tobin tax causes market participants to orientatemore by macroeconomic fundamentals. This paper suggests that these assumptions arequite questionable. Moreover, a Tobin tax of a sensible rate would be too small to protectcountries from currency fires and would generate only little monetary autonomy. Inaddition to theoretical economic doubts there arise some political problems, which canmake the tax to become infeasible.||en_US|
|dc.relation.ispartofseries|||aDiscussion paper series / Universität Konstanz, Center of Finance and Econometrics (CoFE) |x03/01||en_US|
|dc.subject.keyword||International Financial Markets||en_US|
|dc.title||Some Criticism of the Tobin Tax||en_US|
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