Tuesday, March 22, 2022

A G20 Move?

The G20 is covered in the infamous Chapter VI of the Handbook.

In short, it's an international organization of some of the largest economies BUT they're mostly chosen for political reasons, which is kind of weird.

Anyway, the leaders of the G20 have summits where they try to coordinate macroeconomic and regulatory policies internationally (which is a good thing). For example, the Biden administrations trial balloon of a uniform tax on corporate profits across countries of 15% is a G20 idea.

Today's news is that Poland has asked that Russia be expelled from the G20,† and the U.S. views that suggestion positively. This would be another way to sanction Russia.

Note that there's a smaller group of bigger economies called the G7. It used to be G8, but they booted out Russia after they invaded Ukraine in 2014, so there is a precedent for this.

† This is a little strange too. The composition of the G20 includes 4 big European economies, but it also includes the European Union of which 3 of them are members. The idea is that the EU votes on behalf of the other 24 countries (including Poland). But it might also imply that Germany, France and Italy get 1+ votes in the meetings? Maybe so.

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