Erturk, Korkut - In: Review of Political Economy 18 (2006) 1, pp. 71-78
This paper clarifies why a transaction tax, such as the Tobin Tax, can stabilize financial markets. In markets that are … volatility. Thus, a Tobin Tax can potentially have a stabilizing effect on international currency markets not because it reduces … to current price changes, which also has a stabilizing effect. Thus, to the extent that a Tobin Tax causes traders in …