Rescuing our Jobs and Savings: What G7/8 Leaders Can Do to Solve the Global Credit Crisis

The unfolding financial market meltdown could trigger a massive and prolonged recession that would destroy hundreds of millions of jobs worldwide and wipe out the savings our countless households; as usual, the most vulnerable would be hit hardest. If economic policymakers continue with their business-as-usual behaviour, they risk becoming the authors of the next Great Depression. The time for forceful coordinated action has arrived. Leaders should agree to a plan back it forcefully. Any global plan must have options as the crisis in Iceland is not the same crisis as in the US or Germany, but coordination is essential to restore confidence. Coordination and dialog is also important to avoid the downward spiral of international cooperation that followed the last great crisis in the 1930s. This eBook collects essays from some of the world?s leading economists on what governments can do to rescue our jobs and savings. While they differ on many points, a clear consensus emerges on need to act, the need to act cooperatively and on the basic options for action. The authors are: Alberto Alesina, Michael Burda, Charles Calomiris, Roger Craine, Stijn Claessens, J Bradford DeLong, Douglas Diamond, Barry Eichengreen, Daniel Gros, Luigi Guiso, Anil K Kashyap, Marco Pagano, Avinash Persaud, Richard Portes, Raghuram G Rajan, Guido Tabellini, Angel Ubide, Charles Wyplosz and Klaus Zimmermann.