Barcelona Graduate School of Economics

Understanding The Financial Transaction Tax Debate

May 01, 2012

Though the European Union is considering the viability of a Financial Transaction Tax or Tobin tax, it is unlikely to be implemented given the current economic situation. Excerpt from a working paper by Daniel Chorzelski, Lukas Doerfler, Alex Hodbod, and Hannes Timischl, students in the International Trade, Finance, and Development...

The Tobin Tax

May 01, 2012

Background The idea of taxing speculative financial transactions was initially proposed by the British economist John Maynard Keynes in 1936 as a mechanism to reduce uninformed short-term speculative trading and thereby reduce the excessive volatility that the financial sector caused for the real economy. Keynes was concerned that the sheer...