A surge levy on capital flows can deflate speculatively-driven emerging-market bubbles.

Evidence

For decades, developing countries were undermined whenever the ‘smart’ money, detecting future economic growth (e.g. South Korean, Thailand, some African countries), rushed in to buy land and companies before their price went up. As the money inflows surged, the prices of land and companies skyrocketed and false expectations regarding the level of growth set in, thus inflating bubbles. The moment the bubbles burst, as they inevitably do, the ‘smart’ money rushed out of the country faster than it had rushed in, leaving nothing but ruined lives and economies behind. The purpose, therefore, of the surge levy is to tax these speculative money movements to stop unnecessary damage to the weakest of countries. — Yanis Varoufakis, Technofeudalism, 731

Categorization

• XREF: Echoes the reader’s platform-rent thesis: financial speculation as a rent-extraction mechanism targeting weak economies. — connects to: Mainstream economic models cannot explain when bubbles start or stop — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 519; Financial bubbles burst when current production cannot repay loans borrowed from the future. — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 825
• corroborated: 2 independent passages support this claim — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 731