The G7 and G20 have a key role in steering the process of finalising the post-crisis financial regulation. The second issue that the Italian presidency intends to move forward on is that of inclusive growth. Here, too, there needs to be interaction between the G7 and G20, not least because economic and social marginalization is a concern for advanced and emerging economies alike.
First, when the economy faces a shortage of demand, it is considered an important role of monetary policy to close the negative output gap by stimulating the economy from the demand side.