International Finance

Global Solutions Hubs

At our Global Solutions Hubs, you will find policy recommendations, solutions and experts on the policy areas of the G20 and T20. They cover the topics that are at the heart of the Global Solutions Initiative.
Do you have ideas for a Global Solutions Hub or would you like to submit your own Solution Session? Please contact us (contact@global-solutions-initiative.org).
Coordinated Fiscal Stimulus 2.0: What G20 Can Do to Counter the Global Economic Slowdown?

As the world is facing an economic downturn aggravated by the coronavirus pandemic, the creation of multilateral mechanisms of mitigating the consequences of such crises is once again on the agenda. G20 is the appropriate platform to discuss such mechanisms, in particular, dealing with the fiscal stimuli. Limiting the coordinated fiscal response solely to the country level significantly restricts the scale of resources that may be devoted to fiscal stimulus at the global level. There is an urgent need for a mechanism that allows for a coordinated response across all layers of the Global Financial Safety Net and the use of an entire array of reserves and resources to deliver the stimulus. These layers should include that of regional integration arrangements and regional development institutions, whose resources have become a significant part of the Global Financial Safety Net.

This coordinated stimulus exercise should improve upon the previous effort, undertaken in 2008-2009, through focusing more on the composition of fiscal spending with greater priority accorded to human capital development, most notably healthcare. Apart from targeting short-term exigencies, the stimulus should also address longer term vulnerabilities, including the undersupply of healthcare services on a global scale. Another important aspect of the economic stimulus is the possibility of amplifying the effects of fiscal spending at the national level with added momentum coming from the regional development banks and other regional institutions that need to work closely with global organizations such as the World Bank, WTO and the World Health Organization.

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Experts

Hu Angang
Center for China Studies, Chinese Academy of Sciences, Tsinghua University
Ekaterina Arapova
Center of Sanction Policy Expertise, MGIMO University
Timur Maksimov
Deputy Minister of Finance of the Russian Federation
Marc Uzan
Reinventing Bretton Woods Committee
What can the G20 and Central Banks do to deal with monetary and financial challenges in context of the COVID-19 crisis while preparing the way to a new normal in monetary policy?

The discussion about ending the exceptional monetary and financial measures and policy strategies adopted after the 2008 Financial Crisis to return to a “new normal” in monetary policy, gained momentum in 2019 both among policy makers and in the academic research circles. Leading central banks started strategic reviews that should have reached conclusions before the end of 2020. These developments reflected advances in theory, empirical evidence and policy experience as well as new concerns about financial stability, income and wealth distribution, and growing global financial interdependence. However, the Covid-19 pandemic has created a new situation. Its economic consequences will persist for a substantial period and will require new special short-term measures by central banks, well-coordinated with fiscal authorities, to stabilize economies and safeguard financial stability; together with a medium-term strategy for phasing out these crisis measures. This panel will discuss monetary and financial strategies for dealing with the economic shocks triggered by the COVID-19 crisis, and what the G20 and do to support these at a time when multilateralism is in crisis and reaching consensus on the coordination of monetary and financial strategy is difficult. How can central banks and financial authorities maintain financial stability while providing the liquidity required for moderating economic shocks? What lessons can (or cannot) be learned in this regard from the global financial crisis in 2008? How can monetary and financial response measures be designed in a way that prepares for an exit strategy in 2-3 years to return onto the path towards a “new normal” in monetary policy? How can the G20 support this while including central banks and fiscal authorities from other countries?

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Experts

Jean-Claude Trichet
Banque de France
Franco Bruni
Bocconi University Milan
Lorenzo Bini-Smaghi
Société Générale
What can the G20 do to support tax systems for just and resilient societies? Fighting inequality through progressive taxation

Just and resilient societies depend on an adequate public funding base to provide important public goods, such as health care and education. The COVID-19 pandemic crisis has put a stark spotlight on this: Strong public health systems are an important pre-requisite for successfully dealing with the medical consequences of the pandemic, and fiscal stimulus packages will play an important role in stabilising economies.

However, in recent years there has been an erosion of the public funding base in many countries, as the globalisation and digitalisation of value creation was accompanied by profit shifting and tax avoidance. What can the G20 do to support tax systems for just and resilient societies? Will the OECD led initiative on Base Erosion and Profit Shifting come to a successful conclusion in 2020, as envisaged by G20 leaders? How can progressive wealth taxes contribute to more equitable societies?

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Experts

Norbert Walter-Borjans
Social Democratic Party of Germany (SPD)
Jayati Ghosh
Jawaharlal Nehru University, New Delhi
Chidi King
International Trade Union Confederation
Wayne Swan
Australian Labor Party

Policy Briefs

Expanding the global financial safety net
Haihong Gao - Institute of World Economics and Politics, Chinese Academy of Social Sciences (CASS), José Antonio Ocampo - School of International and Public Affairs, Columbia University, Kevin P. Gallagher - Global Development Policy Center, Boston University, USA, Ulrich Volz - SOAS University of London, William N. Kring - Pardee School of Global Studies, Boston University
Covid-19 crisis: How should the G20 support heavily indebted low-income countries?
Abebe Shimeles - African Economic Research Consortium (AERC), Kathrin Berensmann - German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE), Njuguna Ndung’u - African Economic Research Consortium (AERC)
Assessing the impact of stablecoins on the international monetary system: G20 and IMF to study the impac of Facebook’s libra project
Bertrand Rioux - King Abdullah Petroleum Studies and Research Center (KAPSARC), Eiji Ogawa - Tokyo Keizai University, Fatima Yousef Al Sabaie - Bahrain Center for Strategic International and Energy Studies, José Siaba Serrate - Argentine Council for International Relations CARI
Time to implement a tech-driven sovereign debt transparency initiative: Concept, design, and policy actions
Emilios Avgouleas - School of Law, University of Edinburgh, Rym Ayadi - Euro-Mediterranean Network for Economic Studies (EMNES), CASS Business School
Monitoring countrie’s commitment against illicit financial flows
Aitor Pérez - Elcano Royal Institute, Gerardo Rodríguez - Universidad de las Américas Puebla
Digital money is here: G20 (Thinking) must go digital. A systemic agenda is necessary to steer the risky transition process and reap long-term benefits
Claude Lopez - Milken Institute, Halit Ünver - Research Institute for Applied Knowledge Processing, University of Ulm, José Siaba Serrate - Argentine Council for International Relations CARI, Pavel Trunin - Gaidar Institute for Economic Policy, Sergey Drobyshevsky - GAIDAR Institute for Economic Policy
Bigtech companies: An inclusive and global regulatory framework is needed
Claude Lopez - Milken Institute, José Siaba Serrate - Argentine Council for International Relations CARI
Monetary policies, strategies, and the Covid-19 crisis
Franco Bruni - Bocconi University Milan, José Siaba Serrate - Argentine Council for International Relations CARI
Coordinated and comprehensive fiscal and monetary stimulus for tackling the Covid-19 crisis
Jean Dong - Australia-China Belt and Road Initiative, Naoyuki Yoshino - Financial Research Centre, FSA Institute, Nella Sri Hendriyetty - Asian Development Bank Institute, Peter J. Morgan - Asian Development Bank Institute (ADBI)
Monetary Policies Strategies and the COVID-19 Crisis
Franco Bruni - Bocconi University Milan, José Siaba Serrate - Argentine Council for International Relations CARI
Digital Money Is Here: G20 (‘s Thinking) Has To Go Digital, Too
José Siaba Serrate - Argentine Council for International Relations CARI, Claude Lopez - Milken Institute, Halit Ünver - Research Institute for Applied Knowledge Processing, University of Ulm, Pavel Trunin - Gaidar Institute for Economic Policy, Sergey Drobyshevsky - GAIDAR Institute for Economic Policy

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