Definition: Tobin Tax

Tobin Tax - "a tax on all foreign-exchange transactions, levied to discourage short-term (especially speculative) capital movements, on which the burden of the tax is substantial. The author, James Tobin, suggests that each country tax transactions originating in its country at one-tenth of 1 percent per dollar per transaction." - source: Economic Development 4th Edition by E. Wayne Nafziger

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