Financial Regulatory Forum

G20 to task IMF to probe “Tobin tax” on financial transactions -G20 source

By Reuters Staff
September 25, 2009

Economist James Tobin, who conceived the idea of a global tax on financial transactions that now bears his name. PITTSBURGH, Sept 25 (Reuters) – G20 leaders have tasked the International Monetary Fund to investigate ways the financial markets could pay for the effects of the economic crisis, such as a tax on all international financial transactions, a G20 source said on Friday.

“A so-called ‘Tobin tax’ on all international financial transactions will not be mentioned specifically in the final communiques, but it was discussed. The IMF will now investigate and report back to the next G20 meeting,” the source involved in the G20 summit in Pittsburgh said.

German Chancellor Angela Merkel told ARD Germanan television that the G20 ask the IMF to make proposals on bearing the costs of the global economic crisis and one such possibility is a financial market transaction tax.
“We will likely have a formulation that makes clear that we are dealing with the question of who pays the costs of such a crisis,” Merkel told ARD German television from the G20 summit in Pittsburgh.
“We ask the International Monetary Fund to make us proposals on this by the next meeting. One possibility is a financial market transaction tax,” she added.

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