The final communique by the G-20 in Moscow implicitly addressed Japan’s recent monetary policies and quantitative easing in the U.S. The G-20 proclaimed the need for global market forces to set exchange rates. It called for resisting monetary policies that can result in trade protectionism.
The G-20 also called for action concerning global tax evasion by multinational corporations.
National monetary and tax policies have a direct impact on trade flows. There is a role for both the IMF and the OECD in advancing a global dialogue on these issues in order to promote a viable framework of multilateral rules.
As the global economy improves, partially through increased government stimulation of demand, the currency issues will undoubtedly become less high-profile. However, the issue of taxation of global transactions has already become target number one by governments around the world.
Just last week the finance ministers of France, Germany and the U.K. co-authored an op / ed piece in the Financial Times calling for coordinated action.
It’s about time. The time for a serious debate is here and the time for action is now.
…. “Group of 20 Vows Markets Set Currency Values.” New York Times (Feb. 17, 2013).
…. “We are Determined that Multinationals Will Not Avoid Tax.” Financial Times (Feb. 16, 2013).