Russia’s invasion of Ukraine compels central banks and G7 to take action
Thursday 10 March 2022 – Vol.13 Ed.10.4
Commentary: Ukraine conflict cripples G20 but unifies G7
By Mark Sobel in Washington
Russia’s invasion of Ukraine crystallises key shifts underway in global governance. Among others, it will cripple the G20 and elevate the G7. To the extent there is a now an East/West split, the new East consists of Russia with half-hearted Chinese backing. With fissures torn open between the West and the new East, the G20 will be riven this year and lucky to tread water. Eyes in the West will instead focus on Germany’s G7 presidency.
Read the full commentary on the website.
Commentary: Central banks must switch to a war footing
By Lorenzo Codogno in London
The world has changed over the past two weeks and central banks’ policy cannot stay the same. Sanctions and disruptions to the global supply chain are here to stay. Central banks will lack clarity on the effects of these economic phenomena. Unconventional policies can still provide some extra accommodation. No matter how creative central banks may become, most of the heavy lifting would have to come again from the fiscal side. The sooner, the better.
Read the full commentary on the website.
