As world leaders gather in Canada for the G8 and G20 meetings, they are divided on what is to be done about the global economy, with debates over banking reform and stimulus spending taking centre stage.
On stimulus spending, initially everyone wanted to borrow to make sure the great recession did not become another great depression.
Today, Europe wants to cut, while America and China want to spend.
Jan Randolph, head of Sovereign Risk Country Intelligence at Global Insight, said the US worries that leading economies will "collectively withdraw these supports too soon there could be an economic relapse, just like what happened in the 1930s that extended the great depression."
When to spend and how much? These are not new debates.
Politicians in the great depression of the 1930s and the stag-flation period in the 1970s fought elections on these very questions.
Academics and economists have been arguing about this stuff, without pause, since the depression.
http://english.aljazeera.net/focus/2010/06/201062571713780493.html
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