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Financing development with global taxes: Fiscal revenues of a currency transaction tax
[Financer le dévelopement avec des taxes globales: Revenus fiscaux de la taxe sur les transactions de change]

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  • Bruno Jetin

    (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique)

Abstract

Our proposal focuses on the Currency Transaction Tax (CTT) and establishes that a trade-off between curbing inflation and generating fiscal revenues is indeed possible. In a first section, we rely on an international political economy approach to retrace the evolution of the political debate at the institutional level and its reflection on the concrete proposals made by economists committed with NGOs. In a second section, we update previous works (Jetin, Bruno 2007) (Jetin, Bruno 2002) to estimate the fiscal revenues of the CTT based on a set of hypotheses and using of the last BIS data on Foreign exchange markets" (BIS 2007). We estimate revenues at the world level and by regions (Europe and Asia), over the period 1989-2007. We use various hypotheses regarding the evolution of the structure of the foreign exchange market and the elasticity of the volume of transactions. We compare our results with other previous estimations.

Suggested Citation

  • Bruno Jetin, 2009. "Financing development with global taxes: Fiscal revenues of a currency transaction tax [Financer le dévelopement avec des taxes globales: Revenus fiscaux de la taxe sur les transactions de change]," Post-Print halshs-02010231, HAL.
    • Handle: RePEc:hal:journl:halshs-02010231
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02010231
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    References listed on IDEAS

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    1. Davidson, Paul, 1997. "Are Grains of Sand in the Wheels of International Finance Sufficient to Do the Job When Boulders Are Often Required?," Economic Journal, Royal Economic Society, vol. 107(442), pages 671-686, May.
    2. Francis Bismans & Olivier Damette, 2008. "Currency Transaction Tax Elasticity: an Econometric Estimation," Economie Internationale, CEPII research center, issue 115, pages 193-212.
    3. Kapoor, Sony & Hillman, David & Spratt, Stephen, 2007. "Taking the Next Step - Implementing a Currency Transaction Development Levy," MPRA Paper 4054, University Library of Munich, Germany.
    4. Bruno Jetin, 2003. "How can a Currency Transaction Tax Stabilize Foreign Exchange Markets?," Post-Print halshs-03211712, HAL.
    5. Bruno Jetin, 2012. "The Tobin tax," Post-Print halshs-02020052, HAL.
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    Cited by:

    1. Neil McCulloch & Grazia Pacillo, 2010. "The Tobin Tax A Review of the Evidence," Working Paper Series 1611, Department of Economics, University of Sussex Business School.

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