Economy

Vatican Calls For Global Authority To Regulate Markets

Occupy Wall Street Supporters Say That The Catholic Church Agrees With Their Movement

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America24, 24 ottobre 2011, 12:20

In order to resolve the current financial crisis, the Vatican called Monday for the creation of an International Bank and the introduction of taxation measures on financial transactions.

The document "Note on the reform of the international financial and monetary systems in the context of global public authority," released by the Pontifical Council for Justice and Peace followed Pope Benedict XVI's 2009 encyclical "Charity in Truth" ("Caritas in Veritate") which expressed "an urgent need of a true world political authority" that could give poorer nations a bigger voice in financial decision-making.

The note read that the current global financial crisis has revealed "selfishness, collective greed and the hoarding of goods on a great scale," which should be regulated with the creation a supranational authority. According to the note, the current economic and political crisis shows the need of "a body that will carry out the functions of a kind of 'central world bank' that regulates the flow and system of monetary exchanges similar to the national central banks."

Other stages that should follow are "taxation measures on financial transactions through fair but modulated rates with charges proportionate to the complexity of the operations." The creation of such taxation would develop social justice and help to create a world reserve fund to support economies hit by crisis, the document said.

The document said that "forms of recapitalization of banks with public funds making the support conditional on 'virtuous' behaviors aimed at developing the 'real economy'" are necessary. It also invited the international community to think about "the definition of the domains of ordinary credit and of Investment Banking. This distinction would allow a more effective management of the 'shadow markets' which have no controls and limits."

Spokespersons of the protest movements that are currently spreading across the world have interpreted the Vatican release as a sign that the Catholic church supports to their criticisms to the current economic system. "The Vatican has sent a powerful message that prudent regulation of our financial system is a moral priority." Vincent J. Miller, the Gudorf Chair in Catholic Theology and Culture at the University of Dayton, said in a press release. "It’s clear the Vatican stands with the Occupy Wall Street protesters and others struggling to return ethics and good governance to a financial sector grown out of control after 30 years of deregulation.” He added.

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