G20

By Eswar Prasad and Karim Foda

Despite a number of recent shocks, the global economic recovery is getting on to a firmer footing.

The latest update of the Brookings Institution-FT Tracking Indices for the Global Economic Recovery (TIGER) indicates that resurgent job growth and rising business and consumer confidence are solidifying the recoveries in many advanced economies. Emerging markets are still doing well but some of the shine is coming off these economies as they tighten policies to cope with inflationary pressures.

The Overall Growth Index for the G20 economies shows a slight uptick in recent months, led by a gradual rebound in real activity. After the initial post-recession surge, financial markets have pulled back a bit, at least in terms of growth in stock market indexes and valuations. One bright spot is the resurgent business and consumer confidence in both advanced and emerging economies. Read more

Shankar Acharya

Suddenly this month the esoteric world of international finance is resonating to the clash of currencies. On September 27 Brazil’s finance minister stated that an “international currency war” has erupted. In its October 16 issue the London Economist put “Currency wars” on its cover, with evocative imagery of an aerial dogfight between paper planes of currency notes from different countries. Read more

From the FT:

Goodbye, Macroeconomics – Eli Noam Read more

By Masahiro Kawai and Michael Pomerleano

In response to the crisis, the international financial community has established the Financial Stability Board (FSB). The FSB aims to address vulnerabilities and to develop and implement strong regulatory, supervisory and other policies in the interest of financial stability.
The FSB mandate is sweeping. Read more