Perhaps the greatest danger for the upcoming G20 meeting is that politeness will prevail, with leaders diplomatically and prudently stepping back from the sharp accusations traded in the last couple of weeks. It would be a mistake, because the escalation in the rhetoric was simply a symptom of the seriousness of the issues which have to be dealt with at a global level, and cannot just be politely wished away. The clearest signal is the virulence of the accusations hurled at the Federal Reserve after its decision to launch a second round of quantitative easing. Major powers such as China and Germany have accused the US of engaging in a misguided attempt to depreciate the dollar, with little or no… Read more
Bruegel blog
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G20: Conflicts now need to be resolved, not papered over
10th November 2010
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An opportunity to shape the future of the global economy
24th April 2010
The G20 has given a major contribution to containing the financial crisis and fostering a recovery of the world economy from a dramatic synchronised downturn that could well have turned out worse than the Great Depression. Yet the task it faces now is perhaps more difficult than it was at height of the crisis. At that time, the display of coordination itself helped, as showing a united front shored up confidence at critical junctures. In hindsight, one could now even argue that the degree of actual policy coordinationturned out to be much lower than the official statements suggested and that at least in the case of fiscal stimulus measures it reflected a simultaneous coincidence of needs and incentives rather than… Read more