Financial Crisis, G20 and Beyond: Balancing the Global Imbalances
Financial Crisis, G20 and Beyond: Balancing the Global Imbalances

Summary/Abstract: The G20 Summit is finally left behind. The leaders of the most developed 19 countries and representatives of the European Commission and the European Central Bank met at the ‘minimum common denominator’ and arguably went beyond the expectations. Given the differences of the preferences ordering between the US and the EU and between China and the rest, many commentators were expecting theG20 to turn out to be a ‘talking shop.’ Yet, the leaders have succeeded to agree on tightening the financial regulation on financial derivatives and shadow banking to create a stimulus package amounting to 1,1 trillion dollars and to keep the credit channels open to emerging markets via propping up the arsenal of the IMF reserves.

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