Resident Fellows Zsolt Darvas and Jakob von Weizsäcker wrote this paper on the pros and cons of a Financial Transaction Tax (FTT) following testimony von Weizsäcker gave for the Economic and Monetary Affairs Committee of the European Parliament. They argue that a small tax on financial transactions is justifiable in order to limit socially undesirable transactions. Please see here for the authors' accompanying presentation.
A revised version of this paper was published as a Bruegel Policy Contribution in February 2010. Please see " target="_blank">here to download the Policy Contribution.