Bank Tax

BEIJING - JUNE 05:  U.S. Deputy Secretary of S... 

Image by Getty Images via @daylife

These days Bank Tax is a hot topic because governments are trying to regulate financial services after the recent financial crisis that effected almost the whole world. Only closed economies like North Korea and Cuba are potentially immune from the boom/bust nature of the global economy.

What caused the recession we witnessed just a few years ago? One possibility is that the world has just changed. There is now more global economic activity than there was before which means that the number and location of the main financial centers is changing. Therefore its practically impossible for western governments and institutions to regulate the financial markets. A problem can be created locally by financial institutions which has a global effect – the subprime crisis.

Not everyone agrees that a bank tax is the best way to regulate the financial industry. Some countries prefer regulation. Other financial thinkers maintain that only the main economies need to be regulated because the others will then just fall into line. The countries that probably need to be regulated are United States, EU, Brazil, Russia and Japan.

Enhanced by Zemanta

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s