Yes, it’s the G-20 summit, which ordinarily accomplishes nothing but this week has decided to do something about budget deficits!
Why? Because the Germans fear inflation and the rest think that markets want to see some pain.
It’s certainly not because of economics, which would suggest that governments run larger deficits now to deal with a global output gap in the trillions.
And so, as Krugman and other have pointed out, we’re staring at a decade of piffling growth and a permanently unemployed underclass in most developed nations.
Oh, and all those righteous promises to rein in the power of the banks? Good luck with that!
Gorilla says: “You can’t abrogate responsibility much worse than they do at the G-20
Tags: G-20, world economy