Exchange Rates and Tobin Taxes

As I start to think about teaching the introduction to exchange rates i remembered the hot debate about the possibility of a Tobin Tax being introduced for speculative currency trading. Do your students think this is a good idea or should the markets and the traders be left alone?

This news article from Bloomberg provides an excellent introduction to the idea of a Tobin Tax on speculative currency trading and is sure to stimulate debate in your classroom. You can read more here.