My message, in a sentence, is that while the G-20 has made considerable progress in strengthening the microeconomic rules governing the regulated financial system, we have fallen short in correcting the imbalances that are plaguing the global economy and fuelling financial vulnerabilities. And this is having consequences.
The slow progress by some countries in implementing adjustments needed to address macroeconomic imbalances is holding back the global recovery and increasing the risk of financial instability. Canada and India are caught in the crosshairs. What can we do? Individually, we can ensure our own macroeconomic policies – monetary, fiscal and exchange rate – are sound and supporting necessary adjustments.