Summary of The Effect of G20 Summits on Global Financial Markets

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

The Effect of G20 Summits on Global Financial Markets summary
Start getting smarter:
or see our plans

Rating

6

Qualities

  • Analytical
  • Overview

Recommendation

If too many cooks spoil the broth, what does that say about the shift in economic focus from the global governance of the G7 to the G20? Meetings of the G7 were often occasions for barricades, riot police and clouds of tear gas. By contrast, the G20 meetings – despite some protests – seem much more civil. Have the detractors mellowed, or is the G20 not quite as powerful as the G7? Market price movements shed some light on whether – and what – this more diverse group is delivering. getAbstract recommends this thought-provoking attempt at discovering the informational impact of the G20 meetings on financial markets.

About the Authors

Marco Lo Duca and Livio Stracca are economists at the European Central Bank.

 

Summary

In 2008-2009, as the developed world scrambled to respond to its most severe economic challenge in decades, the meetings of the G20 – which has mostly supplanted the previously dominant G7 – garnered global attention. While gaining broader relevance by representing a much larger proportion of the world economy and population than the more exclusive G7, the G20 highlights the deeper divergence of members’ goals, which inhibits decision making. But a stronger “input legitimacy” deriving from a wider membership may offset the G20’s weaker “...


More on this topic

Customers who read this summary also read

The European Green Deal
8
Managing the Coming Global Debt Crisis
8
Redefining Europe’s Economic Sovereignty
8
Fifty Shades of Green
7
Why Is the Fed’s Balance Sheet Still So Big?
8
One Hour Investor
7

Related Channels

Comment on this summary