C. Fred Bergsten & Arvind Subramanian, IIE | October 8, 2008
With the financial crisis teetering on the verge of global contagion, a coordinated, worldwide effort is needed to avert a further calamity. ++ "There is inherent tension as finance becomes global but its regulation remains national." ++ Solutions include a global stimulus program with different countries using different tools: recapitalizing banks for psychological purposes and expanding coverage of deposit insurance to prevent bank runs. ++ This week's annual meeting of the IMF is the opportune chance to stanch global losses and fears.