Don’t get me wrong. I am not arguing that fiscal policy does not matter to the cyclical outcomes, or that fiscal policy should not be made with an eye to the cycle as well as to the structural position. To the extent it can be, of course that is welcome.
Small open economies suffer the most, as they rely on trade with the advanced economies and large economies - who are the price setters. Addressing these risks at both country and global level requires strong institutional frameworks and a commitment to cooperation and coordination. The rising interconnectedness has widened the set of shared problems that are more effectively addressed through a global agenda.