Public discussion series by Die Junge Akademie and the Wübben Stiftung Wissenschaft: Peter-André Alt talks with guests about new perspectives in science and research. Series of events kicks off with Andrea Binder.
Tax havens are not only used to hide financial assets, but also to increase them. Political scientist Andrea Binder investigates how this works and why this practice is so precarious. Global banks headquartered in Germany and elsewhere use offshore financial centers such as the Cayman Islands to hand out cheap loans in US dollars to other banks, corporations, and companies around the world. With every loan that is disbursed in US dollars, the offshore banks increase US dollar supply, they ‘create foreign currency’. This process is subject neither to financial supervision nor to political control, undermines rules that would apply to banks in their home markets, and contributes to increasing inequality.
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