The G-20 meeting of the Prime Ministers and Leaders of the richest and most powerful countries ended on a very happy note, with China offering the IMF $43 Billion and India offering $10 Billion. Such money to give cheap loans to poorer nations is an excellent move to stimulate growth worldwide, and Mme Lagarde was obviously delighted with the support she got from Japan, Saudi Arabia, United Kingdom, and all the other nations. This will enable her to write a new story for the worldwide economic Recovery.
The Bank of England's measure to provide £100 Billion of asset purchase and liquidity into the U.K. economy also augers well, where £5 Billion will be pumped in over a month, with other amounts periodically. This is a very sound and generous measure, which will help create work and wealth and help the economic Recovery tremendously. Hopefully, now, the local shopkeepers, tradesmen, motor dealers, house-builders and so on will be able to borrow some money cheaply to continue trading, as well as for people to buy cars, houses, home improvements, shopping, etc.
The meeting on Friday after which Mme Merkel went to watch the Euro match where Germany won, will put in place the measures to boost growth in the Eurozone. She agreed with the Italian, French and Spanish Premiers to boost funding to provide for growth of one percent of GDP. With the election of the conservative party in Greece, who have formed a pro-bailout coalition with Pasok and others, for the time being this will give stability to the Euro and Eurozone.
The Oil price has fallen, and this will help speed up Recovery, and I hope the price will be down for a sufficient length of time, say 4 to 6 months.
All in all, with the measures now in place, it appears that the worldwide economic Recovery will gather pace over the next few months and over the next two years.
The only thing that needs to be done is for the BRICS nations to reduce the Central Bank repo rates.
Convergence of interest rates would help, and the less disparity is there with the mature economies, the more in tune will all the economies become.