News from Danske Research
With G20 countries on a time schedule for coordinating and reviewing individual countries' economic policies, the process already revealed some weakness as G20 was not able to agree on more specific policy goals. UK Prime Minister's proposal to tax financial transactions is dead on arrival. However, a special tax on financial institutions to finance future bailouts remains on the agenda. Exchange rates issues were avoided in the final communiqué. However, IMF believes CNY is significantly undervalued and it will be hard to avoid exchange rates issues in the review process starting early next year. In addition, IMF put forward seven basic principles for exit policies.
Flash Comment - G20-meeting: Tobin tax steals headlines