Journal Article

The G-20 mutual assessment process—a perspective from IMF staff

Hamid Faruqee and Krishna Srinivasan

in Oxford Review of Economic Policy

Published on behalf of The Oxford Review of Economic Policy Ltd

Volume 28, issue 3, pages 493-511
Published in print January 2012 | ISSN: 0266-903X
Published online September 2012 | e-ISSN: 1460-2121 | DOI: http://dx.doi.org/10.1093/oxrep/grs020
The G-20 mutual assessment process—a perspective from IMF staff

More Like This

Show all results sharing these subjects:

  • Macroeconomic Aspects of International Trade and Finance
  • International Finance

GO

Show Summary Details

Preview

In the wake of the financial crisis, G-20 leaders launched a framework to mutually assess their policies to help strengthen the global economy. This article reflects on the experience so far with the Mutual Assessment Process (MAP). It looks at the coordination problem facing G-20 economies with respect to the need for global rebalancing of demand. While a classic ‘coordination failure’ has some appeal, a more compelling case for policy cooperation is based on the role of spillovers and interdependence. In this context, the G-20 MAP—as a coordination vehicle—has the potential to build shared understanding, enhance mutual trust, and galvanize action among members. Simulated gains from collective action are potentially sizeable. However, key conditions that engendered remarkable global cooperation at the height of the crisis are now more diffuse, posing challenges to what the MAP might achieve going forward and providing some initial lessons for international policy coordination.

Keywords: policy coordination; coordination failure; imbalances; global rebalancing; financial crisis; spillovers; interdependence; F32; F41; F42

Journal Article.  8677 words.  Illustrated.

Subjects: Macroeconomic Aspects of International Trade and Finance ; International Finance

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.