Financial Stability and the International Monetary Fund

Dipak Basu and Victoria Miroshnik
Additional contact information
Dipak Basu: Nagasaki University
Victoria Miroshnik: Tsukuba University

Chapter 8 in International Business and Political Economy, 2015, pp 94-98 from Palgrave Macmillan

Abstract: Abstract The IMF has proposed two new global levies on banks to be considered. The first, the ‘financial stability contribution,’ is a flat levy to be paid by all banks to generate a self-insurance fund equivalent to 4–5 percent of each country’s GDP, totaling about $1–2 trillion. The second levy, called the ‘financial activities tax,’ or FAT, is on the profits and remuneration of banks, and this money can be paid into general revenue, meaning that it is not geared for insurance but to deter risk-taking behavior. The IMF also recommends that resolution regimes, or ‘living wills,’ be mandated alongside this scheme to try to address some of this moral hazard so that taxpayers will not be forced to bail out banks if they can fail without causing systemic collapse ( www.imf.org /external/pubs/ft/gfsr/2014/01/pdf/c3.pdf).

Keywords: Monetary Policy; International Monetary Fund; Financial Stability; Major Economy; Stimulus Package (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-47486-5_9

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137474865

DOI: 10.1057/9781137474865_9

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().