Thanks very much to Hinrich and Rob for the very useful replies.
Regarding Hinrich's quote on the usefulness of a Tobin tax, I agree about its
limitations. "Global Finance: New Thinking on Regulating Speculative Capital
Markets", Ed Walden Bello, Nicola Bullard and Kamal Malhotra, has two chapters
(14 and 15) which make a technical and persuasive case that it is practically
possible, given the political will. What becomes clear though are the
limitations of the tax, even if the financial powers allow its implementation.
As the authors of Chapter 14 write (p.201):
"There are two clear limitations to the Tobin tax: first, it does not stop major
speculative attacks on a given currency. And second, it does not solve the
problems caused by the disappearance of the previous international monetary
system, and by the fact that it has not yet been replaced. The Tobin tax only
represents a 'few grains of sand thrown on the roaring fire of international
finance'."
The tax would greatly reduce the constant speculation which drives currency
movements and instability. It would not even begin to address the issues of
development that require a much broader range of tools.
Bill
Global Finance: New Thinking on Regulating Speculative Capital Markets", Ed
Walden Bello, Nicola Bullard and Kamal Malhotra, publ. The University Press,
Dhaka, and Zed Books, London and New York, in association with Focus on the
Global South, Bangkok, in 2000
Hinrich Kuhls wrote:
>
> Rob Schaap forwarded:
>
> > > A colleague heard a news item in the last few days that France has
> > > adopted a Tobin tax, which will be used to fund overseas development >
> > aid. Can anyone confirm that or provide more details please?
> >
> > German Minister Says Jospin's Tobin Tax Won't Work
> > by Ulrika Lomas, Tax-News.com, Brussels
> > 31 August 2001
> >
> >
> >French Prime Minister Lionel Jospin's Tobinesque fox finally ran into the
> >buffers on Wednesday when German Deputy Finance Minister Caio
> >Koch-Weser (Deputy Minister, mind you, not even the Minister) said that better
> >regulation of derivatives and hedge funds would be more promising than taxes
> >as a way of curbing volatile capital flows. Koch-Weser, speaking to newspaper
> >Financial Times Deutschland, said the idea of a so-called 'Tobin tax' on
> >foreign exchange transactions 'has charm but will never fly'.
>
> Additional details:
>
> Jospin backs moves for cross-border capital tax
>
>http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3E4NQ0YQC&live=true&query=tobin
>
> More at:
> www.ftd.de/tobin-tax
>
> Schwerpunkt Tobin Tax: Berlin lehnt Devisenumsatzsteuer ab
>
>http://www.ftd.de/cgi-bin/gx.cgi/AppLogic+FTContentServer?pagename=PrintArticlePage&artid=FTDEER3LYQC
>
> Populärer Angriff auf die Spekulanten
> Die Organisation Weed hält die Devisenmärkte für "überliquide". Besteuerung
> und Zielzonen für
> Wechselkurse gelten als Rezept.
>
>http://www.ftd.de/cgi-bin/gx.cgi/AppLogic+FTContentServer?pagename=PrintArticlePage&artid=FTDSQIJ00RC
>
> More additional links...:
>
> Unterschriftenaktion an die Bundesregierung
> Devisenumsatzsteuer gegen weltweite Spekulation und zur Finanzierung von
> Entwicklung
> http://www.weedbonn.org/finanzmaerkte/tt_u_form.htm
>
> Möglichkeiten und Grenzen der Stabilisierung der Finanzmärkte durch eine
> Tobin-Steuer
> Autoren: Peter Wahl, Peter Waldow
> http://www.weedbonn.org/finanzmaerkte/tt_paperd.htm
>
> Tobin Tax, Speculation and Poverty
> http://www.attac.org/fra/toil/doc/attacliegeen.htm
>
> ... and finally a quote:
>
> "Eine Besteuerung internationaler Finanzflüsse - eine rein negative
> Maßnahme - ist zwar nützlich, aber ganz und gar unzureichend. James Tobin
> hat selbst erklärt, dass das Hauptverdienst der von ihm vorgeschlagenen
> Steuer darin besteht, eine andere Kreditpolitik mit ermäßigten Zinssätzen
> zu ermöglichen."
> (Paul Boccara, Demokratische Umverteilung - Märkte beherrschen und
> überwinden, Sozialismus 5-2001,
> http://www.sozialismus.de/05.01/boccara05-01.htm )
>
> "Une taxation des flux financiers internationaux, mesure uniquement
> négative, serait utile mais tout à fait insuffisante. James Tobin lui-même
> a déclaré que le principal mérite de la taxe qu'il a proposée est de
> permettre une autre politique de crédit abais sant les taux d'intérêt."
> (Paul Boccara, Des partages. Pour maîtriser les marchés, in: Economie et
> Politique. http://www.pcf.fr/Eco-po/0012/boccara.pdf )
>
> hk
