Once settled with the voting procedure for the previous topic on the first generation immigration, debates continued with the topic concentrated on the creation of robust international economic coordination systems so as to mitigate adverse spillover effects of advanced nations’ monetary policies.
The discussion fixed attention on the UMPs (unconventional monetary policies) which led to various opinions being shared between the delegations. “Monetary policy has reached its limits, so given the conditions of globalization we need a global free agreement throughout a global multilateral forum considering emerging economies” stated Germany, starting a round of questions. The concept of a global forum was supported later in the moderated caucus by Italy. The delegation of Italy explained there ought to be discussed how to adapt the policies to each state’s needs with the view to reaching an optimal solution for everyone.
However, there intervenes Pakistan, which states that “we have to take into account how UMPs can affect the macroeconomics and the economic prospects in general, especially in emerging countries”. The statement was supported by the delegate of Rwanda: “UMP’s affect the process of deflation, increasing it, on the other hand they might have positive effects in developing countries”.
UMPs are indeed shocks consisting in a mixture of different actions of which the effects are not necessarily the same. It is also not clear whether the dynamic effects of shocks in normal times are similar as in a crisis period.
Shots were fired at the delegation of USA-which previously tried to explain the lack of guilt in the actual economic state since ” there was no time for international cooperation”- when Czech Republic directly accused them for the ongoing crisis, asking a key question “were their decisions related to the fact that they were going through elections at the time?”
Obviously, it was a day full of events for the ECOSOC which gives their best to reach an agreement in the most diplomatic way.
by Ana Combei, ECOSOC Press Officer