The political and economic debate in Washington is normally reliably inward-looking – particularly during an election year. But, after a couple of days here, I’ve been struck by the intense interest in (and anxiety about) the European debt crisis. Yesterday, the New York Times and the Washington Post ran very similar lead editorials, imploring Germany to act.
By the end of the day, action had indeed been taken. But it was led by the Federal Reserve in the US, in co-ordination with the central banks of the euro-zone, Britain, Japan, Switzerland and Canada. Even China joined the party, by announcing the first cut in its reserve rates for almost three years.