The imposition of regulations by an individual economy, including a Tobin tax, needs to be undertaken with caution, as it can give rise to regulatory arbitrage and reduce international confidence. Properly-designed and well-implemented prudential policies may play an effective role in alleviating capital flow pro-cyclicality and minimizing the policy side effects.
The German press reports on the “job miracle in the north” - especially as the fall in unemployment and resilient growth is being accompanied by a marked course of consolidation in public finance.