Editing Tobin tax (section)

====Would there be net job losses if a FTT tax was introduced?====
Schwabish (2005) examined the potential effects of introducing a stock transaction (or "transfer") tax in a single city (New York) on employment not only in the securities industry, but also in the supporting industries. A financial transactions tax would lead to job losses also in non-financial sectors of the economy through the so-called [[multiplier effect]] forwarding in a magnified form any taxes imposed on Wall Street employees through their reduced demand to their suppliers and supporting industries. The author estimated the ratios of financial- to non-financial job losses of between 10:1 to 10:4, that is "a 10 percent decrease in securities industry employment would depress employment in the retail, services, and restaurant sectors by more than 1 percent; in the business services sector by about 4 percent; and in total private jobs by about 1 percent."<ref name="Schwabish">{{Cite journal|last=Schwabish|first=Jonathan A.|year=2005|title=Estimating Employment Spillover Effects In New York City with an Application to The Stock Transfer Tax|journal=Public Finance Review|volume=33|issue=6|pages=663–689|doi=10.1177/1091142105278945|s2cid=154475282}}</ref>

It is also possible to estimate the impact of a reduction in stock market volume caused by taxing stock transactions on the rise in the overall unemployment rate. For every 10 percent decline in stock market volume, elasticities estimated by Schwabish<ref name=Schwabish/> implied that a stock transaction ("transfer") tax could cost New York City between 30,000 and 42,000 private-sector jobs, and if the stock market volume reductions reached levels observed by Umlauf (1993) in Sweden after a stock FTT was introduced there ("By 1990, more than 50% of all Swedish trading had moved to London")<ref name="Umlauf, Steven R. 1993"/> then according to Schwabish (2005), following an introduction of a FTT tax, there would be 150,000-210,000 private-sector jobs losses in the New York alone.

The [[Forward contract|cost of currency hedges]]—and thus "certainty what importers and exporters' money is worth"—has nothing to do with volatility whatsoever, as this cost is exclusively determined by the interest rate differential between two currencies. Nevertheless, as Tobin said, "If ... [currency] is suddenly withdrawn, countries have to drastically increase interest rates for their currency to still be attractive."<ref name="Jubilee-trans"/><ref name="Reiermann"/>