FX Week

Germany to look at Tobin FX tax

According to a draft of the government coalition agreement, quoted by Reuters last Wednesday (October 9), "the government will discuss financial instruments in international organisations", highlighting the Tobin tax as one option.

US Nobel prize-winning economist James Tobin first mooted the idea in the 1970s as a means of stabilising currency markets and inhibiting short-term speculation. He proposed a 0.5% charge on currency transactions, which would be used to help poorer economies. But s