Global Cooperation Among G20 Countries: Responding to the Crisis and Restoring Growth
Since the unfolding of the 2008 global financial crisis, the G20 has played a major role in coordinating macroeconomic policies of major economies and reviving the world economy. As the world’s primary forum for international economic cooperation, its objectives have been to ensure more sustainable and balanced growth, achieve economic and financial stability and reform the prevailing international financial architecture. In the wake of the crisis, there was a sense of urgency and strong agreement to enact extraordinary policy measures to fend off the collapse of the real sector because of the “collapse of confidence” in the financial sector. The G20 performed spectacularly in this regard: global gross domestic product (GDP) contracted less than expected in 2009 and rebounded faster than expected in 2010. These coordinated actions were widely credited for forestalling a second Great Depression, with the G20 declaring victory at their third summit at Pittsburgh in September 2009 (“It worked”).
KeywordsInternational Monetary Fund Euro Area European Central Bank Capital Control Fiscal Consolidation
We are deeply grateful to Isher Ahluwalia, Parthasarthi Shome, Rajat Kathuria and members of the ICRIER G20 team for their support related to this volume.
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