The G20 meets this weekend in Washington for a summit on the financial crisis. Markets are watching (and waiting) for further measures to shore up the financial system. It will also be interesting to see how discussions over reforming the world’s institutions pans out. However, given that the US is in the process of transitioning power from Bush to Obama, it is not entirely clear how easy it will be to come to any firm agreements on this front. News wires also report differences of opinion on the extent of necessary financial regulation.
UK Prime Minister Brown heads to the meeting pressing for joint fiscal and monetary stimulus, noting that “the cost of inaction is greater than the cost of any action”. Markets are likely to be disappointed if the meeting does not produce a sizable fiscal package to add to the welcome easing already delivered. Given that fiscal stimulus is likely to be at the forefront of most politicians minds it would be surprising if some sort of initiative is not announced.
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.
You must log in to post a comment.