An excise duty on cross-border currency transactions proposed by James Tobin, the 1981 Nobel Prize winner. Such a tax is supposed to reduce exchange rate fluctuations by discouraging short-term trading; at the same time, with a huge volume of transaction in the currency markets, the tax would generate substantial revenues that could be used for basic human and environmental needs. The term is often used more generally to describe any tax on financial transactions.
Reference: Oxford Press Dictonary of Economics, 5th edt.
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