Overall, a fiscal stimulus coordinated across countries appears to be increasingly expedient as the intensity of the trade stand-off among the leading trading powers is showing further signs of escalation. Rather than an ad hoc response from a number of countries a decade ago a more comprehensive, rules-based and coordinated arrangement could be advanced in a way that renders this anti-crisis mechanism a systemic part of an effective use of the Global Financial Safety Net (GFSN). Indeed, in order to magnify the synchronicity effects of the fiscal spending at the country level, other layers of the Global Financial Safety Net could be employed, namely the stimulus coming from the regional and global development banks/institutions as well as Regional Financing Arrangements (RFAs)....Keyword— "coordinated."
The dilemma is that national sovereignty is needed for democracy, but this generally acts against a coorodinated international response. There is no supervening international mechanism as yet.
No comments:
Post a Comment