How to Ease the Global Crisis

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According to Simeon Djankov, Chief Economist at the World Bank Group's Crisis Talk blog, of all the possible things the G20 Summit leaders could have done, this one would ease the crisis the most: a commitment to triple the amount of money the IMF has for lending to $750 billion.

The G20 has also committed about $250 billion to boost global trade.

See why Djankov thinks the IMF lending notion (there are doubts about the global trade boost) is a good idea here.

Gear Up For Globalization: Answers From Real People

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Question from:

Laurel Delaney, Founder and President, GlobeTrade:

"Do you think Ex-Im Bank will cut back or be more willing to extend loans to SMEs (that qualify on exports) this year in light of a possible recession?"

Answer from:

Chad Moutray, Chief Economist & Director of Economic Research, U.S. Small Business Administration, Office of Advocacy:

"Small businesses are increasingly sophisticated global players who are able to spot opportunities, whether these are found in their local communities or across the globe. The depreciated dollar has given entrepreneurs -- many of whom had not looked at the export market before -- a golden opportunity to pursue sales abroad."

Regarding the possibility of a downturn, Moutray referred us to this study (be prepared for an immediate PDF file download) by Craig and Kohlhase that had been released in December 2006. Note the research summary's overall finding: "Small firms play a vital role in maintaining economic growth in urban areas."

Moutray does not follow the movings of the Ex-Im Bank so there was no comment on the loan policy.

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Add on from LD (1/26/08): Interesting "definition" of Export-Import (Exim) Bank at Answers.com.