Yellen wants MNCs taxed harder

<p>Kia ora,</p><p>Welcome to Tuesday's Economy Watch where we follow the economic events and trends that affect New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news Janet Yellen is calling for a global minimum tax on multinationals.</p><p>But first up today, the IMF has released a series of <a href="https://www.imf.org/en/Publications/WEO/Issues/2021/03/23/world-economic-outlook-april-2021" target="_blank"><strong>global economic reports</strong></a>, the heart of which show rising economic growth rates especially in the first world, but problems for the developing world and rising inequality. The improving American economy is <a href="https://www.iif.com/Publications/Members-Only-Content-Sign-in?returnurl=/publications/id/4355" target="_blank"><strong>drawing billions of dollars</strong></a> in capital from emerging markets, stirring concerns that investor flight may destabilise these countries where pandemic infections remain high and the prospect of an economic recovery seems distant. Not helping are awful local public policy positions in places like Turkey and Brazil.</p><p>The IMF is also <a href="http://www.interest.co.nz/sites/default/files/embedded_images/ch2.pdf" target="_blank"><strong>warning</strong></a> about the rising nonfinancial sector leverage, which they see as a real risk to be addressed and entirely a consequence of loose monetary policies and vast pandemic stimulus. And it is pointing out the global <a href="http://www.interest.co.nz/sites/default/files/embedded_images/ch3.pdf" target="_blank"><strong>risks from commercial real estate</strong></a> in the post-pandemic environment.</p><p>In China, there was a not-so-flash private sector <a href="https://www.markiteconomics.com/Public/Home/PressRelease/5eb45da6eedd4c888f4ba73005e22ce1" target="_blank"><strong>Caixin PMI report</strong></a>. Like its official version, this one reports a cooling in their expansion of activity in private factories and the heat has well and t