James Tobin (Economist)

James Tobin was an American economist known for his influential ideas in finance and macroeconomics. He developed the "Tobin Q" theory, which relates a company's market value to its asset replacement cost, helping explain investment decisions. Tobin also advocated for a tax on financial transactions to stabilize markets, known as the Tobin tax. He received the Nobel Prize in Economic Sciences in 1981 for his work on portfolio selection and risk management. His contributions have significantly shaped our understanding of economic policies and financial markets, emphasizing the balance between risk and return in investment strategies.