With growing evidence that foreign aid is effective when combined with good domestic economic policies, the global political environment may become less hostile to using global taxation as a way of bringing about global income redistribution aimed at poverty reduction. To use the revenue from a currency transaction tax to augment multilateral aid flows would, in these circumstances, have the appeal of assisting countries that are largely bypassed by private international capital markets. Thus, a policy directed towards offsetting the inefficiencies of markets could also be used to mitigate inequity, i e, a global tax for global purposes.
