| Abstract: | National fiscal and monetary policies are dominated by financial markets, and the obsession of these markets with inflation is forcing governments to neglect other crucial economic and social goals such as growth of employment and reduction of poverty. Exchange rate volatility also adds to business costs and risk. Introduction of a small international levy on foreign exchange transactions would reduce short-term speculation and so the power of the markets to influence interest rates and to destabilize exchange rates. Revenue from the levy would be of benefit to both national governments and the UN for disaster relief, development and strengthened security programmes. Support for the levy is growing. |
