Nobel Laureate James Tobin was an American economist genius on the wrong side of the coin with his rejection on the idea of making use of the Tobin tax as a means for raising revenues intended for development assistance.
Top 10 World's poorest countries
Uploaded by bnbalenda on Oct 26, 2010
Yet this very Tobin tax is the holy grail of the economic crisis of the times if and when implemented not only for development but for philanthropic works as well. Bill Gates endorsing Tobin tax is timely and epic.
James Tobin (March 5, 1918 – March 11, 2002) American economist, served on the Council of Economic Advisors and the Board of Governors of the Federal Reserve System, taught at Harvard and Yale Universities.
Nobel Memorial prize won in 1981.
Nobel Memorial prize won in 1981.
The Tobin tax is a tax on foreign exchange transaction and was originally defined as a tax on all spot conversions of one currency into another, proportional to the size of the transaction and simply put as a Currency Transaction Tax (CTT). It was intended as a new system for international currency stability, devised to cushion and manage exchange rate fluctuations and volatility brought upon by transmitted disturbances from currency exchanges originating in international financial markets. It would be an internationally agreed uniform tax, administered by each government over its own jurisdiction.
Historically, Tobin’s idea was influenced by the earlier work of John Maynard Keynes on general financial transaction taxes reflected on his famous chapter XII of the General Theory on Employment Interest and Money. From 1936 Keynes had already prescribed a tax on transactions, with the aim of linking investors to their actions in a lasting fashion.
Uploaded by blechtromel on May 1, 2007
John Maynard Keynes (Baron Keynes of Tilton 5 June 1883 – 21 April 1946), British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics and the economic policies of governments. Greatly refined earlier work on the causes of business cycles, advocated the use of fiscal and monetary measures to mitigate the adverse effects of economic recessions and depressions. His ideas are the basis for the school of thought known as the Keynesian economics, as well as its various offshoots.
Tobin’s ingenuity transferred Keynes' idea to the exchange markets.
Last 2001, the United Nations have initiated scrutinizing Tobin-style currency transaction tax (CTT). In the year 2009 the EU’s 27 national leaders stopped short of making a formal appeal for the introduction of a so-called “Tobin tax” but made clear they regarded it as a potentially useful revenue-raising instrument.
From where I am coming from, Tobin tax is not an inappropriate response and a further burden to industries, small and medium enterprises, and consumers in the wake of the global financial crisis. It is a continuous world’s surplus for the taking after all calculations have been made. The miniscule basis point of one one-hundredth of a percentage point will deliver a $250 billion "substantial resources" for developing countries as mentioned by Bill Gates (G20 meeting Sept.23/2011-Washington).
Let governments, financial institutions, economists, speculators, banks, etc venture into the viability of Tobin’s tax concept in no time and let’s start having the money flow by implementing Tobin’s tax to the neediest of the world.
Anderson Cooper Full length Bono, K'naan Somalia famine interview
No comments:
Post a Comment