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It seems encouraging that central-bank cooperation reflects a broader consensus. After meeting in November, the G20 nations (the United States, the European Union, Japan, China, India and some other major nations) issued a communiqué forsaking protectionism and pledging "economic stimulus" programs. So far, then, so good? Globalism, not nationalism.

Well, maybe. But as Frieden points out, much of today's "cooperation" is through press releases. Countries agree on broad principles but go their separate ways. Countries renounce protectionism, but there are signs that China—with a massive trade surplus—might relax, or even reverse, its policy of currency appreciation. By making the renminbi cheaper, China would give its exports an added price advantage.

All this compounds the pressures on central banks to restore economic growth. There is not so much cooperation as a shared fear grounded in scholarly conclusions about the Great Depression: don't let panic destroy the financial system; public lenders must advance when private ones retreat. But these plausible responses raise a troubling question: what if this downturn is following a different script?

No. 3: Nicolas Sarkozy

© 2009

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Member Comments

  • Posted By: dada1 @ 12/22/2008 4:59:45 PM

    http://en.wikipedia.org/wiki/Duvvuri_Subbarao [The one from india] , he probably did a better job than these three up here and needs a mention for sure.

  • Posted By: PacificGatePost @ 12/21/2008 12:30:07 AM

    The changes on credit card legislation will have absolutely no real impact on consumers and their use of credit cards.

    JUST LISTEN TO BERNANKE ???
    -
    http://pacificgatepost.blogspot.com/2008/12/bernanke-and-perpetuating-credit-card.html
    -
    Issuers will continue to be abusive of all card holders.

  • Posted By: PacificGatePost @ 12/20/2008 6:12:45 PM

    Here is another perspective on actions pertaining to credit card debt:

    http://pacificgatepost.blogspot.com/2008/12/bernanke-and-perpetuating-credit-card.html

    Not so much will change.

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