A global recovery after the pandemic provides an opportunity to recreate the international order. To this end, advanced countries must choose and maintain a comprehensive macroeconomic stance, while developing countries must be enabled to emerge from the crisis in a stronger position. The tools are available to provide them with the necessary fiscal space.
The world economy is experiencing a deep recession amid a still uncontrolled pandemic. Now is the time to implement a plan for global recovery – one that can credibly bring even the most vulnerable countries into a stronger position than before the crisis.
But we have been here before and to recover better this time, some of the cherished principles that have guided the policy for the past decades (wrongly) will be rejected.
In 2009, leaders of the world’s major economies pledged to recover better from the worst financial crisis since the Great Depression, and they set a tone indicating that the international order was ready to revive the international order, inspired by those who led the march out of the war. and ruin after 1945.
The plan agreed upon at the G20 summit in London was risky: restore confidence, growth and jobs; restore and re-regulate the financial system; …