Oecd statistics show that government health

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the European Union, affected health expenditure. OECD statistics show that government health expenditure in terms of GDP basically stagnated between 2009 and 2018 (Figure 3), increasing by just 0.1%, closer to -0.1% when excluding the USA Patient Protection and Affordable Care Act.
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Figure 3 Government/compulsory schemes current expenditure on health across OECD countries, difference in GDP percentage between 2018 and 2009 Source: TUAC calculations based on the OECD Health statistics database The necessity of globally co-ordinated and more forceful actions Fiscal stimulus is most effective if conducted simultaneously by a number of countries, benefitting from spillover effects at the international level. The OECD (2019) simulates the impact of a hypothetical fiscal stimulus in the euro area close to 4% of GDP over a five-year period. It finds that a combined monetary-fiscal intervention would prove stronger in the short period, and more effective in the long run, thanks to increased productivity and public capital stock, than relying solely on monetary policy, i.e. quantitative easing. Such fiscal stimulus would not only contribute to reduce the debt to GDP ratio, but also the absolute debt stock in the euro area, thanks to boosted GDP performance. The latest Assessment reiterates the call for co-ordinated policy actions across major economies to stimulate activity, beyond European borders (OECD, 2020). A simulated impact of fiscal, monetary and structural measures in all G20 countries, supported via a 0.5% debt-financed fiscal easing for three consecutive years, would raise GDP growth by around 0.8% in the first year and 1.3% in the second year. This represents a stronger outcome than if any of the G20 countries were to undertake the same type of measures independently (Figure 4).
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Figure 4 The benefits of G20 policy co-ordination Note: Scenario in Panel A with all G20 economies simultaneously undertaking changes to fiscal, monetary and structural policies. Countries undertake additional debt-financed public expenditure of 0.5% of GDP for three years, monetary policy becomes more accommodative in economies with policy interest rates above zero (all countries excluding Japan and those in the euro area) and productivity-enhancing structural reforms occur raising TFP by 1% after five years. Confidence is modelled by a 50 basis point reduction in investment and equity risk premia for two years, which slowly fades. Source: OECD calculations using the NiGEM macroeconomic model, in (OECD, 2020). The longer term policy reform agenda Summing up, the inability of governments to take action on coordinated fiscal policy, combined with recent economic and geopolitical tensions, increase systemic uncertainty and negatively affect growth. Global aggregate demand is stagnating because of increasing wealth and income concentration and private debt accumulation. The recovery in employment levels and competitiveness, spurred from the degradation of labour rights and the compression of wages, exacerbates the sustainability of a prolonged economic recovery. The first effects of the coronavirus hint to the precarious position of
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