Group of Seven finance ministers ended 3 days of meetings in Washington yesterday by endorsing a plan to create greater transparency and oversight in financial markets to avert future crises, but no emergency measures to stem the current one. Despite a downbeat report on the likelihood of worldwide recession, and even hunger riots as the cost of food continues to soar, responses to the credit crisis remain national responsibilities, writes the Wall Street Journal.
The finance ministers endorsed a plan calling for banks to report their risk exposures, for tougher capital requirements for banks, and for closer international cooperation between central banks and regulators. "I don't read into the communiqué any joint action," a Deutsche Bank economist tells the Journal. "What I do read into it is acceptance that national governments and central banks continue to act according to what they consider to be domestic needs."