-
How Will the Tobin Tax Change the European Forex Landscape
Over 4 decades ago the US economist and Nobel prize winner James Tobin suggested that a tax should be imposed on spot currency conversions in order to manage exchange rate volatility. While the concept, now known as a Tobin tax, didn't catch up in the USA, it was tried in Sweden in the 80's: a 1% tax on trading equity security was introduced in 1984, then doubled in 1986, then abolished altogether in 1991 after deemed inefficient (trading volumes had hit a record low by that time). Sweden learned its lesson – but the same can't be said for the rest of Europe. Just a couple of days ago 11 countries members of the ... (full story)