G20 back-slapping

Giving the "mission accomplished" signal. Let us hope the outcome does not parallel Mr. Bush's experience when he uttered the same words in 2003. The press release displays the typical hubris of international institutions taking credit for a recovery caused by their prudent use of "concerted policy effort". No mention of the risk of regulatory and jurisdictional arbitrage and competition that will inevitably follow.

Simple Public Relations.

The global recovery has progressed better than previously anticipated largely due to the G20's unprecedented and concerted policy effort. However, it is proceeding at different speeds within and across regions, and unemployment is still high in many economies. We recognize that in such circumstances different policy responses are required. In economies where growth is still highly dependent on policy support and consistent with sustainable public finances, it should be maintained until the recovery is firmly driven by the private sector and becomes more entrenched.
Some countries are already exiting. We should all elaborate credible exit strategies from extraordinary macroeconomic and financial support measures that are tailored to individual country circumstances while taking into account any spillovers. We emphasized the necessity to pursue well coordinated economic policies that are consistent with sound public finances; price stability; stable, efficient and resilient financial systems; employment creation; and poverty reduction.
Countries who have the capacity should expand domestic sources of growth. This would help cushion a decline in demand from countries that should boost savings and reduce fiscal deficits.