Saturday, July 02, 2005



More thoughts in the media on how to address the serious imbalances in the global economy.

The FT's Martin Wolf wrote a piece this week that elicited responses from many websites, including those of Brad De Long and Brad Setser.

One way forward, MW thought, was for China to be fully involved in forum discussions. Also "reform of the International Monetary Fund, to make it relevant to today's world, and a radical restructuring of the increasingly absurd Group of Eight. A forum must be found, together with a permanent secretariat, that makes possible serious discussion of how to proceed among the players that matter."

Both Brad's supported the comment, but thought the likelihood of institutional change was low. De Long went further and suggested a more basic problem is the lack of independent financial discipline in the United States. But, at present, people in all 191 nations won't be offered a referendum to remove powers from their sovereign governments.
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