What G20 Leaders Must Do To Stabilise our Economy and Fix ... - Vox

The world is at a dangerous point. Governments and central banks have staunchedthe bleeding in their financial systems. They seem unprepared, however, for the nextround of difficulties that will arise as the recession grows and financial crises spreadto emerging markets. Economically and financially, there is a clear sense that thingsare spiralling out of control again.The G20 meeting in Washington next weekend is an opportunity for the leaders toshow that they have the will to solve the global crisis. This E-book collects essays onwhat the G20 should do. The authors – world-class economists from around theglobe – identify four priorities for action:• In the financial sector, act quickly, strengthen and coordinate emergencymeasures to staunch the bleeding; in the real sector, use fiscal stimulus to get thepatient's heart pumping again.• Act immediately to strengthen the ability of the IMF and other existinginstitutions to deal with the crisis in emerging markets.• Start thinking outside the box about longer term reforms.• Above all, do no harm.Political conditions are not propitious, yet the state of the world economy is toodelicate to wait. An empty declaration that shows our leaders are unable to agreeon priorities will tell investors that the future will resemble the recent past. Thewrong outcome from this meeting could damage the world economy rather thanrepair it.The authors are: Alberto Alesina, Erik Berglöf, Willem Buiter, Guillermo Calvo, StijnClaessens, Paul De Grauwe, Wendy Dobson, Barry Eichengreen, Daniel Gros, RefetGürkaynak, Takatoshi Ito, Vijay Joshi, Yung Chul Park, Raghuram Rajan, Dani Rodrik,Michael Spence, Guido Tabellini, David Vines, Ernesto Zedillo and JerominZettelmeyer.Centre for Economic Policy Research2nd FLOOR • 53-56 GREAT SUTTON STREET • LONDON EC1V 0DG • TEL: +44 (0)20 7183 8801 • FAX: +44 (0)20 7183 8820 • EMAIL: CEPR@CEPR.ORGwww.cepr.org