Short term capital movements, Tobin tax and its applicability in Turkey

The globalization movement which started After the second world war fastened at the beginnig of the 1970s, after Bretton Woods Monetary System was abadoned. It also affected whole world as a strong hurricane after the end of the cold war. Especially by the globalization of the national capital, a new vision which was held by speculators who aimed earning money through money. These speculators by short term capital movements, caused a lot of imortant crisis all over the world by making rapid entering and leavings to the markets of high interest and low exchange rates. Such crisis are caused by them several times, 1992 ERM, 1994?1995 Latin America, 1997 Asia, and Russia. There are some advises known as capital controles to stop such activities and speculators, and to clean the effects. One of these suggestions and advises is called as Tobin Tax, which is named after James Tobin. This is getting a small amount of tax from all the forign exchanges from all over the world. At Turkey capital movements became legal by the capital liberalisation after 1980s and by the law number 32 at 1989. As a result of this law, in turkey a lot of short term really important amount of money entered and leaved. Because of that great money acts, in 1994 April, 2000 November and 2001 February crisis happened. At that study, Tobin Tax, the first choice about the subject of how to slow down short and long term money movements, is studied and it is researched how can it be used in Turkey.Key Words: 1) Short Term Capital Movements, 2) Financial Crisis, 3) Capital Controls, 4)Tobin Tax, 5) Capital Movements Toward Turkey