What policymakers can do to fight the financial carnage?

LONDON (Reuters) — Global finance ministers and central bankers meet in Washington at the G7 and the International Monetary Fund this weekend to discuss a response to the global financial crisis. A coordinated approach by the world's major economies to strengthen the banking sector is urgently needed to stop the financial market carnage, analysts say. Restoring confidence is the top priority. But the complexity and global nature of financial links make solutions difficult to agree upon or even to implement. Ad-hoc packages of national measures have so far failed. Analysts say individual country efforts must be globally coherent and internationally reinforcing. Here are some of the ways that could be achieved: Money market/interbank guarantees Getting short-term money markets working again is critical to keeping the gears of... [read full story]                    

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