G20: Avoiding Armageddon

Be thankful for small mercies. The US and the UK aren’t likely to fall out with continental Europe at this week’s G20 summit in London over the fiscal boosts. The draft communiqué promises to do what’s needed to restore growth and ensure long-run fiscal sustainability. But it falls short of calling for any new Keynesian stimulus. This fudged language is an acceptance of the facts of life. The fiscal stimulation so far, led by the US and China, was probably needed to stop the global economy tumbl...