Remember when the main thing the G20 had to worry about were yawning global economic imbalances and a worldwide currency war? Those were the days.
The heads of government meeting this week in Los Cabos in Mexico will be occupied with the crisis in the eurozone, where there are plenty of internal imbalances but – at least for the moment – no ability to resort to exchange rate movements to correct them.
Globally, although disputes over trade and protectionism are rising, the clashes over currency that disfigured previous G20 meetings have eased. An amalgam of events and policies have reduced exchange rate misalignments and take heat out of the issue.
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