Paul Krugman argues in the New York Times that Obama has to think big on reflation: ‘Barack Obama should learn from F.D.R.’s failures as well as from his achievements: the truth is that the New Deal wasn’t as successful in the short run as it was in the long run. And the reason for F.D.R.’s limited short-run success, which almost undid his whole program, was the fact that his economic policies were too cautious.’
China shows how it’s done. When they decide to spend $586bn to boost the economy, it’s on real stuff like infrastructure, not bank bailouts.
The meltdown gets to Brazil, which had previously considered itself invulnerable.
Dani Rodrik ‘leaks’ the G20 communiqué of his dreams ahead of the big summit on Saturday, and shows how Asia has successfully resisted financial globalization (and is now reaping the benefits).