I’ll just steal this quote from Messrs Eichengreen and Baldwin and note that this crisis really ought to provide political scientists who are into studying the development (or lack thereof) of inter-state political coordination with lots of work in years to come:
Global economic and financial leaders are convening this weekend in Washington DC for the annual meetings of the IMF and World Bank. G7/8 finance ministers will meet Friday on the sidelines of the Fund/Bank meetings to craft their response. The global financial community will assemble the next day at IMF headquarters. This is a golden opportunity for agreeing a coordinated plan.
The authors of the thirteen essays do not agree on every point (there was little or no coordination among them as this initiative was launched on mid-morning of 8 October). Nevertheless, there is a remarkable degree of consensus on what must be done.
Policy makers must move boldly to stabilise the financial system. The basic elements are:
* A quick bank recapitalisation with global coordination
* A guarantee of deposits and/or loans with global coordination
* Further, coordinated macroeconomic stimulus.