The Tobin Tax, named after Nobel Prize-winning US economist James Tobin, was proposed in 1971 for the first time with the intention to levy it on short-term capital currency transactions. whenever currency crises have erupted, the proposal for a levy on international currency transactions has been debated.
- Tobin tax as a tool to discourage speculative currency trading and reduce exchange rate volatility. The Tobin tax is often referred to as the Robin Hood tax, as many see it as a way for governments to take small amounts of money from the people making large, short-term currency exchanges.
- The Securities Transaction Tax applicable on stock market transactions in India is a similar tax intended to discourage short-term investments.
- According to International Monetary Fund (IMF), a Tobin tax might reduce market liquidity and effectively increase volatility — clearly contrary to its suggested purpose. The legislators should thus consider a Tobin tax proposal only in the event there is a similar imposition at international level as unilateral measures can prove more damaging than the exchange-rate instability they are designed to cure. Rigid controls can cut India off from economic reality, and make the country uncompetitive.
Final Destination for Haryana PSC Notes and Tests, Exclusive coverage of HPSC Prelims and Mains Syllabus, Dedicated Staff and guidence for HPSC Exams HPSC Notes brings Prelims and Mains programs for HPSC Prelims and HPSC Mains Exam preparation. Various Programs initiated by HPSC Notes are as follows:-
- HPSC Mains Tests and Notes Program
- HPSC Prelims Exam 2024- Test Series and Notes Program
- HPSC Prelims and Mains Tests Series and Notes Program
- HPSC Detailed Complete Prelims Notes