Monday, 9 November 2009

Harmony in the G20 is starting to unravel

"But behind the ostensible harmony, the shared interests forged at the height of the financial crisis are starting to diverge. Some countries are already going their separate ways (see box). Australia and Norway are both already tinkering with monetary policy, although their commodities-fuelled economies have few implications elsewhere. But last week's statement from the ECB also included noises about an exit strategy: "...looking ahead, not all our liquidity measures will be needed to the same extent as in the past." And within 24 hours of the weekend's G20 communiqué, Manmohan Singh, the Indian Prime Minister, signalled that stimulus measures are set to be withdrawn from 2010."

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