The G20 took the extraordinary step last week of joining a meeting of the Paris Club, the informal forum where 19 member countries coordinate on debt reschedulings and write downs for countries that are in debt distress. The monthly meetings of the club (always in Paris) have long been known to be tight lipped, closed door, and well, clubby.
CGD Policy Blogs
Hey international community, so you’re feeling helpless as you watch the debt limit crisis unfold in Washington? Here’s something you can do about it.
With the world’s economic policymakers in Washington this week for the annual meetings of the World Bank and IMF, there is no shortage of commentary from foreign officials about the dire impact of a US government debt default (see here, here, and here), including the harm already done in the form of spikes in borrowing costs for their governments.
What happens when the biggest player in global economic policy circles shuts itself down?