Some Advice for the G20
The case for expansionary fiscal policy and stronger international regulations
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The April G20 Summit will focus on four general areas: macroeconomic policy, increased financial regulation, international governance and free trade.
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While desirable, effective implementation of international co-operation on macroeconomic policy and regulation is difficult to achieve.
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We believe that more expansionary fiscal policies are needed in the developed world outside the US. That said, it is unrealistic to expect the G20 to agree on specifics.
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Despite consensus on the need for stronger international regulation, success here will depend on better domestic regulation.
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We expect the G20 to jointly propose a substantial reform of the IMF and other IFIs, paving the way for more effective policies.
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Although the G20 constitutes a major advancement over the G7/G8, ultimately it will need to be consolidated into a smaller group to be more effective. We propose the formation of a G4, within a broader G14.
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G20 leaders need to be tougher on opposing protectionism.
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