What initiative did Tobin take to reduce financial speculation?
Educational programs
Regulation laws
Transaction tax
Subsidies
Answer
A transaction tax, as proposed by Tobin, aims to curb excessive financial speculation by imposing a small levy on each financial transaction. This disincentivizes frequent and short-term trading, encouraging a longer-term investment horizon and potentially stabilizing financial markets. The tax serves as a means of reducing the negative consequences associated with excessive speculation, promoting a more stable and sustainable financial system.
The Legendary Legacy: Exploring the Life and Ideas of James Tobin
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