For those looking at a sneak preview of what’s to come in the London Summit of G20 on April 2, breakingviews.com has a leak.
“The G20 blueprint programme, a copy of which has been obtained by breakingviews.com, is largely a statement of principles,” said Hugo Dixon, the website’s editor in chief and chairman. “The scheme will have to be blessed when the leaders meet in April. Detailed numbers and regulatory mechanisms will then need to be worked out in the coming months.”
I waded through the “scheme” and tried to figure out just what’s in store. My conclusion: more of what we already know, much of what we already expect, lots of holy-sounding noises but nothing revolutionary, and maybe, just maybe, the first step in the creation of a new global financial order. Here’s a quick analysis of what the report’s 24 recommendations mean.
“Recommendation 1: As a supplement to their core mandate, the mandates of all national financial regulators, central banks, and oversight authorities, and of all international financial bodies and standard setters, should take account of financial system stability.”
My view: Of course! Stability, after all, is the new keyword, the overarching word of global finance today.
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