Especially in Europe but in most of the G20 countries, austerity policies have reduced aggregate demand, therefore stunting gross-domestic-product growth. The primary mode of stimulating these economies has been to pursue quantitative easing (QE), which amounts to printing money. This combination of fiscal austerity and expansionary monetary policy, known as easy-money-tighter-fiscal policy (EMTF), has led to weak currencies as the majority of G20 countries have collectively pursued EMTF. At the same time, Japan’s central bank is now contemplating an antideflationary, currency-weakening policy, threatening a currency war with China and other Asian economies. To stimulate growth and avoid a currency war, G20 governments and central banks need to reform tax systems by closing loopholes and moderate the growth of government retirement and health benefits while employing QE policy as needed to avoid deflation.