Thursday, 2 April 2009

Global recovery plan on unprecedented scale...

…but no fiscal stimulus of course.

What we have is a promise to make over a trillion dollars "available" to the world economy if nations can meet criteria of the G20 deal.

There'll be an extra $500bn in funding available to the IMF, plus an increase to $250bn of the money available to developing countries, and $250bn set aside for trade assistance.

A lot of what happens next will depend on whether countries play ball instead of being protectionist.

Alistair Darling was just asked in the House how he can be optimistic protectionism won't happen now, when trade talks failed even in the good times.

His answer was that one's only real option is to be optimistic.

2 comments:

Anonymous said...

The whole thing will turn out to be a big con.

Boombastic said...

Turn out to be? It is a great big con. When the Chancellor in effect says cross your fingers and hope for the best you know the economy is screwed and is gonna stay that way for a while.

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