Would taxation stabilise world financial markets?
Summary of CIDSE/Caritas Internationalis background paper on “Taving Excessive Currency Speculation to Prevent Social Crisis and Finance 61obal Challenges” by Dr Danny Cassimon * Globalisation of the world economic system is proceeding at a very rapid pace and is even promoted as welfare improving. However, the presumed virtues of globalisation are far from being materialised. No orderly or stable financial system has yet been implemented as recent currency crises in South East Asia, Russia and Brazil painfully demonstrate. Furthermore, the current financial system does not channel sufficient funds to finance crucial world problems such as adequate social development ‘in poor countries. A proposed solution is to use a straightforward mechanism designed to tax the currently undertaxed (international) financial flows. Specifically, this proposal calls for the implementation of a tax that is levied on international currency transactions, i.e. a ‘Currency Transaction Tax’ (CTT). Speculativ
