Hidden Bibliographic Details
| Other authors / contributors: | International Monetary Fund. Fiscal Affairs Department, issuing body.
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| ISBN: | 1455206997
9781455206995
1462374220
9781462374229
1455262609
9781455262601
9786613782250
6613782254
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| Notes: | Includes bibliographical references (pages 55-58).
Restrictions unspecified
Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
English.
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
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| Summary: | Annotation Tobin has suggested that exchange rate volatility be controlled through a tax on international financial transactions. This analysis shows that the Tobin tax as a pure transaction tax is not viable. the tax would impair financial operations and create international liquidity problems. It is also unlikely to deter speculation. However, a possible alternative would be a two-tier rate structureconsisting of a low-rate transaction tax plus an exchange surcharge. the exchange rate could move freely within a crawling exchange rate band, but overshooting the band would trigger a tax on an externality, which is the discrepancy between the market exchange rate and the closest margin of the band. the scheme is inspired by the European Monetary System. However, exchange rates would be kept within the target range through a tax, not through interest policy or central bank sterilization and, eventually, the depletion of international reserves.
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| Other form: | Print version: Spahn, P. Bernd (Paul Bernd), 1939- International financial flows and transactions-taxes. Washington, D.C. : International Monetary Fund, ©1995
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