Cover IMF Working Papers
Buy Book in Print
Financial Transactions Taxes
Author:
Ms. Janet Gale Stotsky
Search for other papers by Ms. Janet Gale Stotsky in
Current site
Google Scholar Close
and
Mr. Parthasarathi Shome
Search for other papers by Mr. Parthasarathi Shome in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 1995: Issue 077
Language:
English
Publication Date:
01 Aug 1995
DOI:
https://doi.org/10.5089/9781451849950.001
ISBN:
9781451849950
ISSN:
1018-5941
Pages:
20
Keywords:
WP; market; capital gains tax; financial instrument; financial asset; market efficiency; cost of capital; futures contract; financial market participant; market volatility; cash market; Financial transaction tax; Transaction tax; Currencies; Capital flows; Stock markets; East Asia; South Asia; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (5.7 MB) Download Epub
Financial transactions taxes have recently gained attention as a possible means to influence the behavior of financial markets and to reduce destabilizing capital flows. One variation is a tax on all foreign currency conversions, often termed a “Tobin tax.” This paper suggests that these taxes would probably not produce the desired effects and would be difficult to design and implement. It is unclear that the possible advantages in reducing some short-term speculative trading would outweigh the possible disadvantages in impairing the efficiency of financial markets. From an administrative perspective, without a broad international consensus and application, these taxes are likely to be easily avoided.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund