Lembutnya Purse itu

Assalammualaikum...

selamat pagi..sebab sekarang pukul 2.30 pgi..hehehe

hari ni, menu kita ada lah purse.

Purse ataupun dompet duit wanita telah mencium pipi seorang teruna...

Nasib baik x sakit sangat...

Malam ni, x pasal aku makan purse warna cream/putih..ntah..aku x tau sangat warna dia...

Masa tu, dalam kereta, sebab "dia" tu bawa kereta...

ngah sembang pasal rosmah..tetiba, aku ditanya...

dah mengundi? aku jawab.. x nak mengundi... pastu diorang tanya, nk buat parti baru.

aku pun jwab, haah...parti Google.. x pasal2 purse kena pipi.. nasib baik dia guna tangan kiri..

tak la terasa sakit sangat kena tu..tapi terasa lak juga...

aku rasa, dia geram sangat kot.. mana tak nya.. dari start discussion lagi asyik kena bahan dengan aku..

non stop kot... dia cakap kat kawan dia, x pa..lepas ni kita g makan angin..

aku cakap kat dia "tengok atas", dia pun tengok.. pastu aku cakap, buka mulut..makan angin kat sini kan senang.. coz masa tu, kitorang dok bawah kipas.

muka dia bengang ja.. pastu masa ngah cari data, punya la rajin dia nak google...

dari sini la aku start kenakan dia ngan ayat google..

bnyk kali gak aku kenakan dia.. x back up dia lgsung bila kawan dia kenakan dia..

aku+kawan2 dia asyik kenakan dia ja...

dah la kawan2 dia tu naik ngan dia...aku x pa, leh balik jalan ja..ada aku kisah lau x nek keta..

hahahha

tapi kan, nak buat camna lau  nature aku ni mmg suka kenakan orang..sebab tu aku kadang2 diam ja.. 

malas nk bergurau lebih... sebab aku takut jadi camni la...nasib baik aku x fren ngan dia..lau x, habis status aku..hehehee

dulu, masa program ngan budak2 skolah, aku ada guna plastik coklat pukul tangan dia...

ya la, coklat dalam tepung tu untuk budak2, mmg aku pukul la x baik dia ambik.

tapi, dia ambik juga..ketegaq betul...

pastu baru aku terfikir bnda ni.. mybe balasan balik kot kat aku...

esok pagi la aku hantar mesge minta maaf lau aku ingat..hehehhe..

mesti malam ni dia tido sambil peluk purse tu..hahahha

awak, kalau awak ada baca blog saya, saya minta maaf ek..

p/s: saya bukan anak orang kaya sangat :-)

The Tobin Tax.

Basically, this is one of my assignment.. Plagiarism? I dont care bout it anymore coz i wanna share what I know with everyone and I believe those who read it wont coppy 100%, yet they will try to understand. TQ.
Any improvement or misinformation, ur opinion is highly welcomed.

THE TOBIN TAX

International trade has experienced various changes in its trading system as from mercantilism until the liberalization era on twentieth century. It evolves from barter trading system into multiple creations of derivatives and from gold standards era into the multi exchange rate regimes. Thus, the stability of international monetary system indirectly has been affected by these changes.

 Historically, trading between nations was settled through the barter system i.e. exchanging commodities and services with the equivalent agreeable amount of commodities and services between two parties. Then, world saw the birth of gold and silver era where the trading of the commodities and services were paid by the gold in which the gold acts as the monetary base of a country. Later, during the World War II period, the world once again witnessed the new financial system known as Bretton Wood system and it was abandoned due to the incompatibility of macroeconomic policies between U.S and European countries and the unwillingness of US to devalue dollar. Since the collapse of Bretton Wood system, countries started to stipulate their own monetary and exchange rate regimes. Some of them adopted floating exchange rate, fixed exchange rate, managed exchange rate and the birth of one currency zone- Euro.

These changes also indirectly caused the volatility and instability of international financial markets which can be trace as among the factors of the economic and financial crises. Thus, foreseeing that this instability will create more problems in the future, James Tobin, an academician proposed the idea of tax levied on every currency exchange, set at a level low enough not to hinder any transaction needed to finance real trade in goods and services or long term capital investment, but high enough to discourage the bulk of speculative movements. 

James Tobin emphasized, this tax would be an internationally agreed uniform tax, administered by each government over its own jurisdiction. Britain, for example would be responsible for taxing all inter-currency transactions in Eurocurrency banks and brokers located in London, even when Sterling was not involved. The tax proceeds could appropriately be paid into the IMF or World Bank. The tax would apply to all purchases of financial instruments denominated in another currency.[1]

Originally, the Tobin tax was been introduced to be levied on the spot transactions with assuming that the derivatives are settled by spot transactions. However, later it was discovered that the nature of forwards contract and swaps is different from the assumption, thus, lead to these two derivatives being taxed.[2] Analogically, assume that you have a saving account in CIMB, however, when you wanted to withdraw your money, let say RM 100, you could not find CIMB atm. Thus, you withdraw your money using BIMB atm, where you were charged RM 1 per transaction and the total amount deducted from your account is RM 101. Remember that, if you withdraw using CIMB atm, you will not be charged RM 1 per transaction and it will provide you with various choices of actions:

1)      You might withdraw RM 10 with 10 transactions = RM 100 deduction in account

2)      You might withdraw RM 20 with 5 transactions = RM 100 deduction in account

3)      You might withdraw RM 50 with 2 transactions = RM 100 deduction in account

4)      You might withdraw RM 100 in single transaction =RM 100 deduction in account

If you withdraw your money with BIMB atm, you will face these choices:

RM 10 x 10 transactions + (10 transactions x RM 1) = RM 110 deduction in account
RM 20 x5 transactions + (5 Transactions x RM 1) = RM 105 deduction in account
RM 50 x 2 transactions + (2 transaction x RM 1) = RM 102 deduction in account
RM 100 x 1 transaction + (1 transaction x RM 1) = RM 101 deduction in account

Comparing the delineated situation, we can get general understanding on how the Tobin tax works. However, the tobin tax idea was proposed on percentage, not in the fixed term as the above analogy. (This analogy was modified and improved from the analogy introduced by Tim Harford)[3]

The idea was pointed out due to the mobility of capital and domestic policies are ineffective in governing the capital market which consists of cash market and capital market. These reasons are claimed as the causes for the financial crises by James Tobin. Nevertheless, there is also advantage when capital is mobile and the argument is that the capital can be used to develop other region. However, most of the arguments of James Tobin in his paper “A Proposal for International Monetary Reform” centered on the floating exchange rate regime rather than arguments in much broader perspectives.

The objectives of the Tobin Tax are basically to reduce short term speculation where evidently 80% of foreign exchange transactions occurred with the average of seven days or less and another reason is to preserve and promote autonomy of national macroeconomic and monetary policies in which indirectly opposed the liberalist’s view that market shall be left to work alone guided by the “hidden hand” as proposed by Adam Smith.

The proponent of the Tobin Tax argued that this tax can stabilize the volatility of the financial market and discourage the short term speculation or hot money that exploiting the interest rates differences. They also claimed that it can generate revenue for the government and the revenue can be used to finance development projects of a country. In the long term, this tax can minimize the effect of economic and financial crises.

As most economists believed that there is no free lunch-everything has its own costs and this Tobin tax also has drawbacks. Empirically, with the introduction of Tobin Tax, it has caused significant capital flight from Sweden into London of 60% of stocks and 50% of equity by 1990.[4] Other disadvantages of implementing Tobin tax is, it will discourage people from participating in financial market transactions and market will become unstable since most of participants argued that speculation promotes the efficiency of financial market. Later, due to discourage nature of tax, it will cause job losses in the financial where the proportion of the financial transactions is almost 3 trillion daily. This situation somehow created domino effect, in which the unemployment will be increased and we can expect that the domestic problems such as political instability, riots and social problems increase accordingly. However, if the government increased the interest rate in order to attract investor, the result will be that the investment needed is not sufficient. Additionally, this tax mechanism is difficult to be administrated given the complexity of the financial markets which not only trading the real economy, but also encompasses financial economy, i.e. derivatives and so forth.

Thus, the effectiveness of Tobin tax still being criticized due to the cost if it implemented as argued by the 

opposition of tobin tax and the same time the benefit of tobin tax can achieve by thoroughly devised on tobin 

tax mechanism.

 

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[1] 1978. “A Proposal for International Monetary Reform.” Eastern Economic Journal 4(July-October):153-9

[2] The Tobin Tax : Coping with Financial Volatility by Adam N.S.G. Baldwin

[3] The Tobin Tax : Coping with Financial Volatility by Adam N.S.G Baldwin

[4] The Tobin Tax: Reason or treason? , A Comparative Study of the Potential Effects of a UK Tobin Tax

READING

Patomaki, H. (2001). Democratising Globalisation: The Leverage of The Tobin Tax. Zed Books Ltd.

Tobin, J. ((July/ October)1978). A Proposal for International Monetary Reform. Eastern Economic journal, 153-159. 

Grunberg, I., Kaul, I., Mahbub ul Haq. (1996). The Tobin Tax: Coping with Financial Volatility. Oxford University Press

Baldwin, A. N. The Tobin Tax: Reason or Treason? A Comparative Study of The Potential Effects of a Uk Tobin Tax

Maswood, S. J. (2008). International Political Economy and Globalization (2nd Edition): 2nd Edition. World Scientific Publishing Co. Pte. Ltd.