Author: Uri Dadush, Carnegie Endowment

The Great Financial Crisis is far from over, but a stimulus-triggered recovery is now taking hold. The contours of the post-crisis economy are already emerging—from the sharply rising public debt levels in most industrial countries to the severely impaired balance sheets of banks and households in countries at the epicenter of the banking disaster, including the United States, the UK, and several smaller European countries. At the same time, China, India, Brazil, and many other emerging markets, which were badly affected at first, demonstrated remarkable resilience in the face of the crisis and have confirmed both their attractiveness as long-term investment destinations and their growing economic and political clout.

The upcoming G20 summit, which will bring together leaders of the largest developing and industrial economies, was born of the crisis, and is the best available option to deal with the post-crisis world. Read more…