To catapult the world economy onto a sustainable growth trajectory, what would be the most desirable policies to be taken by major advanced and emerging economies? I cannot explain this in great detail, but I think that roughly five requirements should be met in order for the global economic recovery.
1 First, major advanced economies should establish a credible medium-term fiscal consolidation plan and put it into practice to put their sovereign finances on an even keel. 1  Excerpt from Governor Choongsoo Kim’s speech on “Out of the Great Recession: An EME’s Perspective” as part of the Distinguished Lecture held by IMFS (Institute for Monetary and Financial Stability) of Goethe University.