In a recent speech, Mervyn King, governor of the Bank of England railed against the inconsistencies of national recovery strategies, saying that, “a present there is no political mechanism for achieving that consistency”.
While he praised the G20 process so far, he added:
“Looking further ahead, the legitimacy and leadership of the G20 would be enhanced if it were seen as representing views of other countries too. That could be achieved if the G20 were to metamorphose into a Governing Council for the IMF, and at the same time acquire a procedure for voting on decisions.”
In an interview with the FT, Read more
Something is afoot in global currency negotiations. President Sarkozy yesterday attacked global “currency disorder” and pledged to make currencies a central theme of France’s presidency of the Group of 20 in 2011.
I know many people will roll their eyes and say, so what’s new. This reaction is totally justified by the standard G7 ritual, loved by all the meeting’s followers.
Before a meeting, the French finance minister or president will make a stink about currencies and overvaluation of the euro, saying that this will be a key topic on the agenda on the next group of seven meeting. Then the meeting comes along. Currencies are not on the agenda. They are not talked about. The G7 then issues the same empty statement about currencies. Read more
More good news for China, Russia and India and more warnings for the US, UK and EU. George Soros asks if the new communist/capitalist divide has been replaced by a polarisation between international capitalism and state capitalism. Read more
Pity the poor finance ministers and central bank governors of the Group of 20 leading countries. They have to hike up to St Andrews in Scotland on Friday, with ghastly weather predicted, to hold a pretty pointless meeting writes Chris Giles of the Financial Times Read more
An attack by Christian Noyer on the banking system reflects the ECB’s mood, writes Ralph Atkins of the Financial Times Read more
Mervyn King goes out on a limb, calling the current proposals for banking reform deluded, writes Chris Giles of the Financial Times Read more
Money Supply, a Financial Times blog, rounds up the day’s economic news. Read more
Oil trades may be denominated in a basket of currencies, rather than the US dollar. Brazil is having a good week, and there are growing calls for IMF reform to go further than that agreed at the G20 Pittsburgh meeting Read more
The G7 communique urges China to let its currency appreciate. The logic of the G7′s position is fine, says Chris Giles of the Financial Times, but it has said it before, China does not agree, and so it is an entirely toothless statement. Read more
The G7 is dying as finance ministers and central bank governors prepare to meet in Istanbul tomorrow. Officials are giving obituaries, but the G7 will have a last hurrah writes Chris Giles of the Financial Times. Canada has had a tantrum and insisted the baton does not pass to the G20 until it has had its turn in the chair next year. Read more
The thing that really stood out from Barack Obama’s press conference was his vow not to return to the bad old ways of “boom and bust”.
Having heard Gordon Brown overuse that phrase for more than a decade, it is too much to hear the same from Obama. The words blew up in Brown’s face once the crisis started. Read more
The G20 summit is done and dusted. The outcome pretty much as expected with the G20 now at the centre of global economic policy making. But the differences with past policy making are not as great as some of colourful language writes Chris Giles of the Financial Times Read more
The G20 leaders are set to work together on reforming the world economy but there are many potential pitfalls ahead. Read more
The emerging G20 communique is a traditional compromise. To please the US and the UK respectively, the words “framework” and “compact” are both used. To please Germany and emerging countries, there is no binding mechanism to force countries to follow G20 missives in future. Fierce arguments which the FT reported today over seats on the IMF board and other reform issues have been swept under the carpet.
So what is new? Read more
Germany is losing the PR battle over trade imbalances, writes Ralph Atkins of the Financial Times Read more
Central banks have started to unwind some of their emergency measures, Ralph Atkins writes in a blog for the Financial Times Read more
The new G20 framework is perhaps not the “biggest decision the world has made on economic policy for many years” as Gordon Brown seems to think, writes Chris Giles of the Financial Times Read more
The Financial Times’ Money Supply morning round-up: Tensions persist over the priorities of the g20 summit, amid warnings that the financial crisis is not yet over. Read more