Sand in the wheels or spanner in the works? The Tobin Tax and global finance

Grahl, John and Lysandrou, Photis (2003) Sand in the wheels or spanner in the works? The Tobin Tax and global finance. Cambridge Journal of Economics, 27 (4). pp. 597-621. ISSN 1464-3545

Full text is not in this repository.

This item is available in the Library Catalogue


This paper presents a radical critique of the Tobin tax—a tax on currency transactions—by undercutting certain assumptions about the size and character of the world's foreign exchange markets which furnish the tax with its basic rationale. While it is acknowledged that only a fraction of the massive volumes of FX transactions relate directly to trade in goods and services or to cross border investments, it is denied that all the residual transactions are motivated purely by exchange rate considerations (speculative or hedging activities). Rather, the argument is that a significant proportion of FX trades have money market characteristics and that these trades, together with domestic money market transactions, play an important role in the day to day operation of the global financial system. This perspective is used to show that the imposition of a Tobin tax would cause extensive material damage to the system, with consequences that may run counter to the expectations of supporters of the tax.

Item Type:Article
Research Areas:A. > Business School > Economics
Citations on ISI Web of Science:8
ID Code:564
Useful Links:
Deposited On:27 Nov 2008 15:31
Last Modified:13 Mar 2015 15:14

Repository staff only: item control page

Full text downloads (NB count will be zero if no full text documents are attached to the record)

Downloads per month over the past year