“In spite of the decoupling experienced in recent years, the fortunes of advanced and emerging economies are intimately linked. The growth of emerging economies has brought a much higher level of economic prosperity to hundreds of millions of their people. And their rising role means that today they share responsibility for global economic performance in half with the rest of the world. They account for almost 50% of global GDP measured in purchasing power parity terms (or just over one third of global GDP measured in market exchange rates). In today’s global economy, advanced economies can face some of the same distress that was earlier associated with emerging economies: profound fiscal challenges, sudden stops in capital flows, macroeconomic retrenchment and forced reform. At the same time, and going forward, the emerging economies will be confronted with the challenges that have long concerned advanced economies: population ageing and, perhaps, reform fatigue. In spite of the current challenges faced by the global economy, we must resist temptation to resort to unilateral policies, and we must work together to ensure that the gains achieved are firmly secured for future generations.”
OK, so what is the message here? G-20 find a way out of this mess? Help me out? And, who is “we”? What kind of intergenerational deal is Mr. Draghi proposing here? And to whom exactly?
This remind me of Aesop’s fable of the mouse and lion: help me out now, one day I will help you out. Nice try anyway.