Global Macroeconomic Cooperation

Consumers worldwide are cutting their spending in response to declining wealth and fear of unemployment. Until households save enough to restore their wealth, there is a strong case for global cooperation to boost the world economy and meet future needs by investing in infrastructure, particularly transportation, sustainable energy, pollution control, and water and sanitation.

NEW YORK – The world has yet to achieve the macroeconomic policy coordination that will be needed to restore economic growth following the Great Crash of 2008. In much of the world, consumers are now cutting their spending in response to a fall in their wealth and a fear of unemployment. The overwhelming force behind the current collapse of jobs, output, and trade flows, is even more important than the financial panic that followed Lehman Brothers’ default in September 2008.