The financial policy of developed countries: current challenges

Abstract

The paper analyzes the following current challenges for the financial policy of developed countries: increasing significant differentiation of economic development and inequality in the distribution of wealth, demographic crisis due to population aging with increasing social burden on public finances, inflation risks, budget risks (increasing budget deficit and public debt), climate change. The paper argues that the change in the technological structure of economic development of society and permanent crises objectively determine the transformation processes in public finances and intensify the role of the state in economic relations. Today, the financial policy of developed countries has recognized effective tools to influence a more even redistribution - reducing the tax burden on the income of low- and middle-income individuals and reducing the tax burden on income from work while increasing taxes on "wealth". Monetary policy is also seen as a tool to influence inequality reduction but as a complement to targeted fiscal and fiscal policies. Given the limited growth of consumer demand during the recovery of the economy, developed countries have decided to stimulate demand from the state through large-scale public investment in digital and environmental technologies, energy, and health, which will stimulate private investment in these areas and contribute to a more efficient redistribution of labor and capital resources. The paper argues that in order to ensure full and sustainable economic recovery after the COVID-19 pandemic and further economic development, the financial policy of developed countries should be based on a stimulating nature of monetary policy, tax policy transformation with an emphasis on taxation of "wealth", environmental taxes, digital economy, active stimulation of demand by the state by investing in the construction of a "green" economy in such priority areas as environmental infrastructure, innovative local infrastructure, digital technologies, health care, research.