James Tobin, winner of the 1981 Nobel Prize in Economics, bluntly stated that "the proliferation of financial operations does not always perform a task more economically but inflates the quantity and variety of financial exchanges, operations that circumvent a regulation and obtain private gain without the equivalency of social benefit".
Specifically, this American academic initially proposed a tax to be levied on currency movements with the purpose of discouraging speculation based on exchange rate variations - hence originating the Tobin Tax concept.
Ricardo J. PalomoFinancial Economics Professor and Dean of the Faculty of CC. Economics and Business of the CEU and DICTUM Academic Advisor
San Pablo University