All Eyes on Paris and the G-20
IMF Blog, February 18, 2011
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Bibliographic details
- Authors: iMFdirect
- Published: February 18, 2011
International cooperation and historical context
- "Certainly the world did not end in 2008 with the collapse of Lehman and the crisis that followed. But, it didn’t mostly—perhaps only—because extraordinary international policy cooperation helped avert a far worse outcome." — Dominique Strauss-Kahn
- The IMF is "an organization of 191 countries, working to foster global monetary cooperation and financial stability around the world."
- The G-20 must "adapt to a new economic environment" and "prove that it is able to coordinate the economic policies of major economies on an ongoing basis." — French G-20 Presidency
Context of the Paris meeting (February 18, 2011)
- G-20 Finance Ministers and Central Bank Governors gather in Paris for the first ministerial level meeting of France’s G-20 presidency.
- The meeting occurs "at a critical juncture" for the global economy, with "tensions and risks emerging that require strong policy responses," and is "critical for ensuring actions on international policy cooperation and reform."
Major analytical contributions and viewpoints
- Dominique Strauss-Kahn:
- Emphasizes uneven recovery: "global growth has resumed, it is uneven, both across and within countries."
- Notes policy trade-offs: "While some advanced economies face high unemployment, some emerging markets face the challenge of overheating."
- John Lipsky:
- Argues 2011 will be "a pivotal year for the global economic recovery and for international policy cooperation."
- Observes that "the current state of the recovery makes the process of cooperation more complex."
- Olivier Blanchard:
- Describes the recovery as "uneven or 'two-speed'" and identifies associated tensions and risks:
- "re-emerging global imbalances"
- "rising food prices"
- "still high unemployment"
- "widening inequalities"
- Warns that left unresolved, these problems "could sow the seeds of the next crisis."
G-20 agenda items and outputs
- Ministers and central bank governors "compromise to agree on indicators to measure global imbalances." (Communiqué referenced)
- Two priority items for the G-20 this year:
- The "Mutual Assessment Process"
- Reform of the international monetary system
- Purpose of these items:
- "support an ongoing recovery and avoid future crises"
- "ensur[e] a better outcome for all"
Further notes and blog context
- IMFBlog is "a forum for the views of the International Monetary Fund (IMF) staff and officials on pressing economic and policy issues of the day."
- The IMF is "based in Washington D.C."
- "The views expressed are those of the author(s) and do not necessarily represent the views of the IMF and its Executive Board."
Source: All Eyes on Paris and the G-20 (iMFdirect, February 18, 2011).