Inadequate regulation, erroneous fiscal policy and old truths of irrationality may be important in telling the story of our current financial crisis to future generations but how long will the chapter on global mismatches be?
The present disparities between a global financial system which is maintained by national governments requires realignment. As global demand contracts, definitive trading slumps occur and with protectionist policies re-emerging it appears that finance may be becoming less global faster than governance globalises itself. Policymakers exchanging similar views concerning the need for greater regulation remains a starting point toward resolving the crisis in the most economically efficient way thus starving off a retreat from globalisation but one things for sure the relationship that existed, over the past ten years, between international finance and sovereign authority in untenable.
With G20 leaders devising overarching stimulus packages to kick-start the world economy, ailing national economies may need more detailed attention. A view reaffirmed by Angela Merkel who pointed toward the great diversity that exists within E.U economies in terms of industrial and agricultural production. Yes to improved regulation and appropriate stimulus but unfortunately, one size doesn't fit all.
The present disparities between a global financial system which is maintained by national governments requires realignment. As global demand contracts, definitive trading slumps occur and with protectionist policies re-emerging it appears that finance may be becoming less global faster than governance globalises itself. Policymakers exchanging similar views concerning the need for greater regulation remains a starting point toward resolving the crisis in the most economically efficient way thus starving off a retreat from globalisation but one things for sure the relationship that existed, over the past ten years, between international finance and sovereign authority in untenable.
With G20 leaders devising overarching stimulus packages to kick-start the world economy, ailing national economies may need more detailed attention. A view reaffirmed by Angela Merkel who pointed toward the great diversity that exists within E.U economies in terms of industrial and agricultural production. Yes to improved regulation and appropriate stimulus but unfortunately, one size doesn't fit all.
