Tobin or Not Tobin? - François Chesnais

Tobin or Not Tobin?

In "Tobin or Not Tobin?", François Chesnais argues that a financial transaction tax (FTT) is a necessary and effective tool for regulating the global financial system. He begins by outlining the history of FTTs, dating back to the early 20th century. He then discusses the various arguments for and against FTTs, and concludes that the benefits of FTTs outweigh the costs.

The Case for FTTs

Chesnais argues that FTTs have a number of benefits, including:

• Reducing financial speculation: FTTs can discourage excessive speculation by increasing the cost of trading financial assets. This can help to reduce volatility in financial markets and make them more stable.
• Raising revenue: FTTs can generate significant revenue for governments. This revenue can be used to fund public programs, such as education, healthcare, and infrastructure.
• Curbing currency manipulation: FTTs can make it more difficult for countries to manipulate their currencies. This can help to promote fair trade and reduce the risk of currency wars.
• Encouraging sustainable investment: FTTs can encourage investors to put their money into productive investments, such as real estate and infrastructure, rather than speculative investments. This can help to promote economic growth and job creation.

The Case against FTTs

Chesnais also discusses the arguments against FTTs, including:

• They could reduce liquidity in financial markets: FTTs could make it more expensive for investors to trade financial assets, which could reduce liquidity in financial markets. This could make it more difficult for businesses to raise capital and could lead to higher interest rates.
• They could be difficult to implement: FTTs would need to be implemented on a global scale in order to be effective. This could be difficult to achieve, as some countries may be reluctant to adopt FTTs.
• They could be evaded: There is a risk that investors could evade FTTs by using complex financial instruments or by trading through offshore financial centers.

Conclusion

Chesnais concludes that the benefits of FTTs outweigh the costs. He argues that FTTs are a necessary and effective tool for regulating the global financial system and that they should be adopted as soon as possible.

Why You Should Buy This Book

"Tobin or Not Tobin?" is a must-read for anyone who wants to understand the global financial system and the role of FTTs in regulating it. Chesnais provides a clear and concise overview of the history of FTTs, the arguments for and against them, and the potential impact of FTTs on the global economy. This book is essential reading for policymakers, economists, and anyone else who is interested in the future of the global financial system.