VATICAN CITY -- Blaming the world's economic and financial crisis on an "economic liberalism that spurns rules and controls," the Vatican on Monday released an ambitious proposal for global regulation of the financial industry and the international money supply.
The 16-page document from the Pontifical Council for Justice and Peace calls for a "central world bank" to regulate the "flow and system of monetary exchanges similar to the national central banks," such as the U.S. Federal Reserve.
The proposal also calls for a global tax on financial transactions, whose revenue would go to a fund to help "support the economies of the countries hit by crisis."
Ultimately, the plan would help establish a "world political authority" envisioned by Popes John XXIII in 1963 and Benedict XVI in 2009. That body would have international governance on arms control, migration, food security, and environmental protection.
The proposal is the Vatican's newest response to globalization, which it says makes far-flung nations more dependent on each other but also more exposed to each other's risky choices and financial mismanagement.