Why PM Brown does not like Tobin anymore?
After UK prime minister Gordon Brown proposed Tobin tax to prevent short term speculative money movements, US, Canada, IMF and European Central Bank , all led backlash against to the Tobin tax. Tobin tax was proposed by, no surprisingly James Tobin after the collapse of Bretton-Woods in 1971, which levies a tax on cross-border monetary movements. I guess the rationale behind the resistance against Tobin’s idea is “tax” purposes. However the proposed idea was an insurance against riskier investments by the banks. But that might raise adverse selection and moral hazard as usual when one raises “insurance” solution!