Financial Times FT.com

Forget Tobin tax: there is a better way to curb finance

By Willem Buiter

Published: September 1 2009 20:19 | Last updated: September 1 2009 20:19

Pinn illustration

Lord Turner, chairman of the UK’s Financial Services Authority, has set the cat among the financial pigeons by making highly critical comments about the City of London and financial intermediation in general. He recommended some drastic remedies, and suggested considering a global tax on financial transactions – a generalised Tobin tax. James Tobin proposed a tax on foreign exchange transactions to stabilise floating exchange rates and achieve greater national monetary policy autonomy in a world of increasing financial integration.

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