There is an unequivocal sign that a cooperation mechanism, a policymaking forum, a “G” in short, is losing effectiveness; that its agenda is becoming an end in itself rather than a premise for purposeful action. It is when its press communiquées lose focus and turn into long lists of unrelated wishes, none of which entailing a serious commitment by any of the participants. We have seen this in the past, for example in certain phases of the G7/G8 history, and malicious voices suggest this is already happening to the G20, the young and most ambitious global economic cooperation forum ever conceived. Are the critics right? Should we lose hope and start thinking about something else? The ongoing French presidency, that… Read more
Bruegel blog
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Let's bring our acts together
22nd February 2011
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Let's bring our acts together
22nd February 2011
There is an unequivocal sign that a cooperation mechanism, a policymaking forum, a “G” in short, is losing effectiveness; that its agenda is becoming an end in itself rather than a premise for purposeful action. It is when its press communiquées lose focus and turn into long lists of unrelated wishes, none of which entailing a serious commitment by any of the participants. We have seen this in the past, for example in certain phases of the G7/G8 history, and malicious voices suggest this is already happening to the G20, the young and most ambitious global economic cooperation forum ever conceived. Are the critics right? Should we lose hope and start thinking about something else? The ongoing French presidency, that… Read more
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The G20 and the Chinese test
12th October 2010
“Problems are rarely solved; they are usually overtaken by new problems” – an old friend of mine, unrepentant pessimist, used to say. This bleak assessment applies to the G20 today. While making an impressive breakthrough on financial reform with the approval of a new bank capital accord, the G20 has so far failed to devise a convincing approach to global imbalances. Its “Framework for Strong, Sustainable and Balanced Growth” never really took off the ground; more than a macro-policy coordination framework, it looks like an orderly presentation of independent policy intentions. Meanwhile, a bigger problem struck: the US, Europe and emerging Asia are clashing on the double front of IMF governance and the management of exchange rates. With the protectionist… Read more
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The G20 and the Chinese test
12th October 2010
“Problems are rarely solved; they are usually overtaken by new problems” – an old friend of mine, unrepentant pessimist, used to say. This bleak assessment applies to the G20 today. While making an impressive breakthrough on financial reform with the approval of a new bank capital accord, the G20 has so far failed to devise a convincing approach to global imbalances. Its “Framework for Strong, Sustainable and Balanced Growth” never really took off the ground; more than a macro-policy coordination framework, it looks like an orderly presentation of independent policy intentions. Meanwhile, a bigger problem struck: the US, Europe and emerging Asia are clashing on the double front of IMF governance and the management of exchange rates. With the protectionist… Read more
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Time to deliver
12th May 2010
In a defining year for its credibility as a cooperation forum (for reasons, see my previous Editorial), the G20 is now approaching a critical juncture. The two meetings scheduled for June (a finance ministers and central bank governors meeting in Busan, Korea, on 4-5 June, in preparation for a leaders’ summit on 23-24 June in Toronto, Canada) are not the last planned for this year, but will unquestionably set the tone going forward and signal what can realistically be achieved in later months. In June we will probably know better how the postcrisis reform program will look like: what can be achieved and what will remain in the book of intentions. We will also begin to understand if the decision… Read more
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Time to deliver
12th May 2010
In a defining year for its credibility as a cooperation forum (for reasons, see my previous Editorial), the G20 is now approaching a critical juncture. The two meetings scheduled for June (a finance ministers and central bank governors meeting in Busan, Korea, on 4-5 June, in preparation for a leaders’ summit on 23-24 June in Toronto, Canada) are not the last planned for this year, but will unquestionably set the tone going forward and signal what can realistically be achieved in later months. In June we will probably know better how the postcrisis reform program will look like: what can be achieved and what will remain in the book of intentions. We will also begin to understand if the decision… Read more
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The Bruegel G20 Monitor
21st April 2010
The clock is ticking for the G20. Not a new actor on the international stage – it met for the first time in 1998, after the Asian and Russian defaults – the G20 has dramatically raised its profile recently, as a consequence of the financial crisis and the international recession. In its new format, the G20 summit of heads of state and government, it has taken the lead in coordinating the international response to the crisis, covering both macroeconomic policies and financial regulation, connecting inputs from the IMF and the Financial Stability Board. This enhanced role has generated expectations that must now be met, or its credibility – its existence perhaps – will be imperilled. As the global economy emerges… Read more
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Don't joke with inflation
8th March 2010
Visiting scholar Ignazio Angeloni argues that the anti-crisis medicine proposed by the IMF- to raise inflation targets in good times- is worse than the illness and defends economic models from the accusation of irrelevance. Click here to download this comment in Italian. Read more
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Le Imprese non paghino le difficolta delle banche
19th January 2010
In this column, Visiting Scholar Ignazio Angeloni argues that the exit phase from the financial crisis will prove particularly dangerous for European small and medium sized enterprises. Many of them, though viable in the long run, are endangered by a prolonged negative cash flow, tight lending by banks and shifting patterns of international demand and competitiveness. Public intervention (eg. through credit guarantees) to temporarily protect SMEs is justified in these circumstances. Click here to download this comment in Italian. Read more
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La cura Volcker puo non bastare
19th January 2010
In this column published in the Italian Il Corriere della Sera, Visiting Scholar Ignazio Angeloni argues that the 'Volcker rule' (the recent proposal by the US administration to ban proprietary trading for comercial banks) is neither necessary nor sufficient to reduce systemic risks in the financial sector. Risks in recent years have mainly come from non-bank intermediaries (hedge funds like LTCM, investment banks, insurance companies). Pridential regulation should be as uniform as possible across types of intermediaries and jurisdictions. Click here to download this comment in Italian. Read more