Wednesday, 10 November 2010

Is a Financial Transactions Tax a Good Idea?

Recorded from the IDS event, Dangerous Ideas in Development: 'Is a Financial Transactions Tax a Good Idea?', dated 9 November 2010

In the week of the G20 summit, this seminar debate's one of the key topics set to be discussed in Seoul: a financial transactions tax (FTT) to help raise money to fight poverty. At this event, Neil McCulloch (Institute of Development Studies), presented his new research into the feasibility of an FTT. His comprehensive review of the evidence suggests that worldwide an FTT on foreign exchange transactions could raise $26bn. In the UK alone it could raise £7.7bn, roughly the same as the entire UK aid budget. However, it questions whether such a tax would reduce market volatility as many of its proponents claim. Speakers from the Robin Hood Tax Campaign and the Association of Financial Markets in Europe responded and then took questions from the audience.