Why the G-20 Finance Ministers Are Wrong

Finance ministers and central-bank governors of the Group of 20 major economies are in Washington for their semi-annual discussion of the world’s dismal economic prospects. The prediction for output and jobs, catalogued in forecasts prepared for their meeting, is unacceptable. It’s also avoidable, if leaders in the U.S. and especially the European Union rethink their policies.

In its latest forecast, the International Monetary Fund says it expects the world economy to grow by a feeble 3.3 percent this year -- a cut of 0.2 percentage point from its previous projection. It foresees weak performance in all the advanced economies. Japan, where policy has just been radically changed, is a partial exception.