Tobin definitions
| Word backwards | niboT |
|---|---|
| Part of speech | Proper noun |
| Syllabic division | To-bin |
| Plural | The plural of the word Tobin is Tobins. |
| Total letters | 5 |
| Vogais (2) | o,i |
| Consonants (3) | t,b,n |
Tobin
Tobin is a financial statistic named after the economist James Tobin. This statistic measures the liquidity transformations that occur when financial institutions create money through the process of credit creation. The Tobin ratio is the ratio of the money supply to the quantity of a reference asset that could be purchased with that money.
James Tobin
James Tobin was an American economist who won the Nobel Memorial Prize in Economic Sciences in 1981. He was known for his work on portfolio selection, monetary policy, and the analysis of business cycles. Tobin proposed his own tax, now known as the Tobin tax, which is meant to reduce speculation in financial markets.
Liquidity Transformation
Liquidity transformation refers to the process by which financial intermediaries convert illiquid assets into liquid liabilities. Banks and other financial institutions engage in liquidity transformation by taking in deposits that can be withdrawn at any time and using those funds to make loans that have longer maturities. This process can create liquidity risk for the institution if depositors suddenly demand their funds back faster than the institution can sell off its assets.
Tobin Tax
The Tobin tax, also known as a currency transaction tax, is a proposed tax on foreign exchange transactions. Its purpose is to reduce speculation in the currency markets that can lead to excessive volatility. The tax would make short-term currency trades less profitable and could help stabilize exchange rates.
Tobin was a pioneering economist who made significant contributions to our understanding of financial markets and monetary policy. His work on liquidity transformation and the Tobin tax continues to influence economic policy discussions to this day.
By measuring liquidity transformations through the Tobin statistic, economists can better understand the interplay between financial institutions and the money supply. This can help policymakers make more informed decisions about regulation and monetary policy.
Tobin Examples
- Tobin is a popular surname in Ireland.
- The Tobin tax is a proposed tax on international financial transactions.
- Sarah Tobin is a well-known author in the field of psychology.
- John Tobin is the CEO of a successful tech company.
- The Tobin Center for the Performing Arts is located in San Antonio, Texas.
- Tobin Heath is a professional soccer player for the USWNT.
- Professor Tobin teaches economics at the university.
- The new Tobin Bridge construction project is causing traffic delays.
- Tobin's spirit lives on in the hearts of those who loved him.
- The Tobin mind map method is a popular tool for organizing information.