The second issue, which has a more domestic focus, is recent developments in the Australian housing market. The international challenge It is useful to start with a reminder of just how unusual the current global environment is. Interest rates are as low as they have ever been in most advanced economies.
But the group’s effectiveness in pushing ahead reforms provided the necessary backing in “leading by example” and what one could call the “output legitimacy” of the G20. More recently, however, the G20 seems to have lost its earlier momentum. The case for acting in unison has diminished now that the most acute phase of the global financial crisis is behind us.