The Group of 20 has struggled in recent years to maintain its relevancy. But it may have just re-established its worth by laying a foundation for higher interest rates.
G20 finance ministers and central bankers met in Ankara, Turkey on the weekend. The resulting statement exceeded expectations; or at least, it exceeded my expectations. Some reporters seized on the pledge to "restrain from competitive devaluations," language that was re-inserted in the text after a two-year absence. More interesting, I thought, was this line: “Monetary policies will continue to support economic activity consistent with central banks’ mandates, but monetary policy alone cannot lead to balanced growth.” And then this one: “We note that in line with the improving economic outlook, monetary policy tightening is more likely in some advanced economies.”
Continue reading at Centre for International Governance Innovation ...