U.S. tax reform plan
could have currency spillover effect: IMF's Obstfeld
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[March 13, 2017]
BERLIN (Reuters) - A
proposal to overhaul the U.S. tax code that favors
exports over imports could have spillover effects to
other economies as it would strengthen the dollar,
International Monetary Fund (IMF) chief economist
Maurice Obstfeld said on Monday.
Maurice Obstfeld, Economic Counsellor and Director,
Research Department of IMF delivers the International
Monetary Fund's media briefing on the world economic
outlook during its annual meeting in Lima, Peru, October
6, 2015. REUTERS/Mariana Bazo
"There are significant spill-over effects that we are looking
into," Obstfeld said, adding that G20 finance ministers and
central bankers will discuss the issue later this week at their
meeting in Baden-Baden, Germany.
"It's a legitimate topic for discussion... It'll be discussed.
There will be a lot of questions among the finance ministers,"
said Obstfeld, adding that a proposed border adjustment tax
could impact other economies via the currency exchange rate
Emerging economies like Saudi Arabia would be most affected.
Asked about the European Central Bank's ultra-loose monetary
policy, which some conservative policymakers want the ECB to
unwind, Obstfeld said the bank was doing a good job and the IMF
was not advocating a premature tapering.
He also said the divorce negotiations between Britain and the
European Union should aim for a deal as soon as possible to
(Reporting by Michael Nienaber; Writing by Joseph Nasr; Editing
by Toby Chopra)
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