The G20 and the World Economy

The G20 meeting in London later this month will be a critical determinant of what is to become of the worlds economy. The G20 agree that something must be done and that they must all take a substantial step forward together, however, the measures that they all wish to take vary. The United States and the United Kingdom have called for public spending on large scale stimulus packages, but much of the rest of Europe is cautioning this idea. Too much money pumped into an economy could cause high amounts of inflation, something Germany knows all too well of. Cabinet Minister Douglas Alexander also said that a failure to come together and make a decision could have a catastrophic affect, much like the one that occurred in Germany in the 1930's after the world failed to reach an agreement on how to deal with the recession. He also urged countries not to follow protectionism, but rather to try to come to a consensus. Until the next G20 meeting the finance ministers have promised to continue stimulus plans, lowering interest rates and increasing IMF funding.