As G-20 Finance Ministers and Central Bank Governors gather in Paris this weekend, their meeting—the first ministerial level meeting of France’s G-20 presidency—comes at a critical juncture, critical for the global economy, with tensions and risks emerging that require strong policy responses, and critical for ensuring actions on international policy cooperation and reform. So, with all eyes turning to Paris, here is some recommended reading for G-20 watchers.
The international monetary system is a topic that encompasses a wide range of issues—reserve currencies, exchange rates, capital flows, and the global financial safety net, to name a few. Some are of the view that the current system works well enough. I take a less sanguine view. Certainly the world did not end with the crisis that began in 2008 and a recovery is under way. But, it is not the recovery we wanted—it is uneven, unemployment is not really going down, there are widening inequalities, and global imbalances are back. Reform of the international monetary system may be wide-ranging and complex. But concrete reforms are needed to achieve the kind of well-balanced and sustainable recovery that the world needs, and to help prevent the next crisis.
Asia’s voice is getting louder and the IMF—and, indeed, the world—is listening. Blogging from the IMF and government of Korea-sponsored “Asia 21” conference in Daejeon, Korea, IMF Deputy Managing Director Naoyuki Shinohara reflects on the rise of Asia’s voice and leadership in global economic policymaking. The caliber of conference participants and the quality of dialogue speak volumes about the range and depth of expertise and experience in the region. The world needs Asian leadership, not only to sustain global growth, but also to develop policy mechanisms to contend with tomorrow’s economic challenges.