Editing Tobin tax (section)

====The appeal of stability====
In 1972, Tobin examined the global monetary system that remained after the Bretton Woods monetary system was abandoned. This examination was subsequently revisited by other analysts, such as Ellen Frank, who, in 2002 wrote: "If by globalization we mean the determined efforts of international businesses to build markets and production networks that are truly global in scope, then the current monetary system is in many ways an endless headache whose costs are rapidly outstripping its benefits."<ref name="Frank">{{cite web|url=http://www.newint.org/issue342/surf.htm?amp;amp;utm_medium=email-html&amp;amp;utm_content=body&amp;amp;|title=Heavy surf & tsunamis|author=Ellen Frank|date=February 2002|publisher=[[New Internationalist magazine]]|access-date=23 February 2010}}{{Dead link|date=July 2018|bot=InternetArchiveBot|fix-attempted=no}}</ref> She continues with a view on how that monetary system stability is appealing to many players in the world economy, but is being undermined by [[Volatility (finance)|volatility]] and [[Exchange rate#Fluctuations in exchange rates|fluctuation in exchange rates]]: "Money scrambles around the globe in quest of the banker's holy grail – sound money of stable value – while undermining every attempt by cash-strapped governments to provide the very stability the wealthy crave."<ref name="Frank"/>

Frank then corroborates Tobin's comments on the problems this instability can create (e.g. high interest rates) for [[Developing country|developing countries]] such as Mexico (1994), countries in South East Asia (1997), and Russia (1998).<ref name="ex"/> She writes, "Governments of developing countries try to peg their currencies, only to have the peg undone by capital flight. They offer to [[United States dollar|dollarize]] or [[euro]]ize, only to find themselves so short of dollars that they are forced to cut off growth. They raise interest rates to extraordinary levels to protect investors against currency losses, only to topple their economies and the source of investor profits. ... IMF bailouts provide a brief respite for international investors but they are, even from the perspective of the wealthy, a short-term solution at best ... they leave countries with more debt and fewer options."<ref name="Frank" />