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Bruegel
21 February 2011

Bruegel published a paper on post-crisis divergence between European and US macroeconomic policies


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The major economies of the EU and the US rapidly agreed on a series of measures to limit the crisis, but the common approach has unravelled since. The Bruegel paper explores why the ‘London consensus’ has not survived for much more than a year.


In response to this situation this working paper suggests a critical quantum of coordination. Key measures include a commitment to avoiding deliberate currency depreciation and unilateral intervention; agreement to give the IMF an enhanced monitoring role; the adoption by parliaments of medium-term fiscal plans  and cooperation on the issue of Chinese undervaluation.
 


© Bruegel

Documents associated with this article

110221_From_convoy_to_parting_ways_WP[1].pdf


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