Under the Influence: Leading the IMF by Example

Under the Influence: Leading the IMF by Example

Andrew Bast's accompanying interview with Simon Johnson, former chief economist of the IMF and currently a professor atMIT and editor of the Baseline Scenario blog, can be found here.

Low expectations preceded last Thursday's G-20 summit in London, but by day's end a curious consensus had emerged. Prior to the summit, a rift had emerged between the United States, which was pushing for more economic stimulus, and the Europeans, who urged stricter regulation reforms. French President Nicolas Sarkozy had even threatened to walk out were he not satisfied with the measures taken. (Asked about it upon landing in London, he quipped, "It would be awkward for me to leave when I've only just arrived.")

Sarkozy did well to stick around. The summit's final communiqué addressed his concerns for more transparency in the global financial system. But more importantly, it made a momentous pledge "to do whatever necessary to fund and reform . . . international financial institutions."

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