PSC 503: International Political EconomyMonday 1/27/2017Tax Havens by Palan This book is not arguing that tax havens were the cause of the '08 financial crisis, but were certainly a factor. Book argues that regulation is key to any future plan to stabilize markets. Tax havens may appear insignificant, but in combination, they play a major role in the world economy: 1.) Undermine regulatory and taxation processes of mainstream states by provision of what may be described as "getout of regulation free" cards to banks/financial institutions, IBs, and wealthy individuals.2.) By doing so, they skew the distribution of costs and benefits of globalization in favor of a global elite and to the detriment of the vast majority of the population^^^ AKA TH's are at center of the type of globalization we've seen since the 1980s.Stagflation - persistent high inflation combined with high unemployment and stagnant demand in a country's economy.This book's main argument: 1.) Most accepted ideas about tax havens are false. Tax Havens aren't working on margins of the world economy, butare an integral part of modern business practice. 2.) TH's don't exist in opposition to the state, but in accord with it. 3.) TH's sovereignty sets them apart, yet also gives them means to integrate themselves into the world on terms that they have, at least in part, been able to set for themselves. Money Wealth and Tax Havens (p. 4) Hedge fund - a limited partnership of investors that uses high risk methods, such as investing with borrowed money, in hopes of realizing large capital gains.In this book's estimation, there are between 46 and 60 active THs in the world today. About 50% of all international banking lending and 30% of the world's stock of FDI are registered in these jurisdictions. The global rich ("richistanis") hold approx. $12 trillion of their wealth in these TH's as of '07. Debate over some TH statistics shows how little we know about them (p. 6) THs is a massive organized attempt by the richest and most powerful to take advantage of collective goods on a scale rarely seen… and perhaps for the first time is taking place globally.