In the last few years, the debate about the supremacy of the G20 over the G7 was simple: the G7 didn’t anymore represent the key players in the global economy, and thus had lost legitimacy. It was time to move to the G20 as the center of global policy coordination.And the success was immediate. The G20 managed to agree quickly on a global fiscal stimulus and on a sharp increase in resources for the IMF, thus contributing decisively to greatly reduce the tail risk of the global economic downturn. Once economic agents realized this, and with the help of aggressive easing of monetary policy, markets and the global economy rebounded sharply. The G20 had saved the day.Since then, however, it… Read more
Bruegel blog
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The G20 - a group in search of a mission?
17th June 2011
