Bruegel published a paper on post-crisis divergence between European and US macroeconomic policies
21 February 2011
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
