Macroeconomic policy cooperation and the G20: What can be achieved?

Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

ACDE Seminar

Date & time

Tuesday 26 November 2013
2.00pm–3.30pm

Venue

Coombs Seminar Room B, Coombs Building 9, Fellows Road, ANU

Speaker

Professor David Vines, Professor of Economics, Oxford University.

Contacts

Arianto Patunru
61259786

The G20 Leaders’ Declaration at St Petersburg called for policies which would increase the momentum of the global recovery, whilst at the same time ensuring fiscal sustainability, and avoiding policies that could promote growth at the expense of other countries. This paper suggests that fiscal austerity in advanced countries is at present inadvertently leading to policies which promote growth at the expense of other countries. At the same time policies promoting export-led-growth amongst emerging market economies continue to promoting growth at the expense of other countries. It suggests that the G20 Mutual Assessment Process, or G20MAP, might encourage increased finance for infrastructural investment – partly through public investment and partly through public-private partnerships – as a way to encourages global demand and reduce the macroeconomic pressures which are being created by policies of fiscal austerity. At the same time it suggests that more rapid expansion of demand by emerging market economies, and an increased willingness by these countries to let exchange rates appreciate, might facilitate moves in the same direction.

David Vines is a Professor of Economics and a Fellow of Balliol College, at Oxford University, and a Research Fellow of the Centre for Economic Policy Research. From 2008 to 2012 he was the Research Director of the European Union’s Framework Seven PEGGED Research Program, which analysed Global Economic Governance within Europe. David received a BA from Melbourne University, and subsequently an MA and PhD from Cambridge University. From 1985 to 1992 he was Adam Smith Professor of Political Economy at the University of Glasgow. His research interests are in macroeconomics, including financial frictions, fiscal and monetary interactions, and financial crisis. His recent books include: The Leaderless Economy: Why the World Economic System Fell Apart and How to Fix It (Princeton University Press, 2013, with Peter Temin); The IMF and its Critics: Reform of Global Financial Architecture (Cambridge University Press, 2004, edited with Christopher Gilbert) and The Asian Financial Crisis: Causes, Contagion and Consequences (Cambridge University Press, 1999, edited with Pierre-Richard Agénor, Marcus Miller, and Axel Weber)

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