Finance ministers and bankers of the G20 nations agreed on two key proposals: 1. to keep the stimulus packages in place and 2. to limit bank bonuses.
Concerning the stimulus packages, a draft copy obtained by Reuters said: "We will continue to implement decisively our necessary financial support measures and expansionary monetary and fiscal policies consistent with price stability and a recovery is firmly secured."
This statement echoed the feeling that policymakers are clearly worried about derailing the recovery.
Concerning bonuses, the finance ministers agreed to create a global structure for imposing tighter controls on pay at financial institutions and to discourage bankers from making the risky bets that took the financial system down.
These included deferring bonus payments over time and subjecting them to "clawback" in case things go sour. However, they fell short of a cap that some countries wanted.
A compromise was reached in which a council would study the matter further.
Another interesting development was discussed. The draft also said that emerging nations such as China and India should have more say in running the International Monetary Fund and World Bank.
There was no definite formula for this but the draft stated that it would grow "significantly" and expected "substantial progress" to be made on this issue.
Do you feel that the G20 actions will stabilize and improve world markets?
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