Brics and straws

Brics and straws

Brics Bank has its own limitations, and let us hope it will...
Much ado about execution

Much ado about execution

Effective delivery must be brought to the centre of policy-making...

Central focus of G-20 meeting is charting a path to shared economic growth: US

Feb 12 2013, 09:09 IST
Comments 0
Central focus of G-20 meeting is charting a path to shared economic growth: US. (Reuters) Central focus of G-20 meeting is charting a path to shared economic growth: US. (Reuters)
SummaryThe surest path to shared growth is through growing and re-balancing demand.

Raising concern over recession hit countries ahead of the G-20 meeting in Moscow, US said the focus of the G-20 nations is to ensure growth strategies in the world's largest economies are mutually compatible and that they promote growth globally.

"For us, the central focus of the G-20 is charting a path to shared growth. The surest path to shared growth is through growing and rebalancing demand, which, of course, requires currencies to adjust," US Undersecretary of the Treasury for International Affairs Lael Brainard said.

"To ensure that growth strategies in the world's largest economies are mutually compatible and that they promote growth globally, we're going to make sure we're going to continue to emphasise the commitment to market-determined exchange rates

and to refrain for those countries who are still in transition from any move to competitive devaluation," Brainard told reporters in response to a question.

Brainard, who would represent the US during the G-20 ministerial, said that while tail risks have eased, global growth is weak.

"One-third of the G-20 is in recession. We need to do more to get people back to work. Toronto 2.0 is not the right answer. We must avoid jeopardising the recovery with a premature shift to restraint," she said.

This will be the first G-20 ministers and governors meeting under the Russian presidency.

The G-20 has to do a better job at balancing medium-term fiscal consolidation with the imperative of supporting near-term growth, she said adding that the findings by the International Monetary Fund and OECD of large fiscal multipliers than previously estimated support the need for caution.

Strengthening demand will require greater progress on global re-balancing. In the absence of offsetting demand growth from surplus economies, overall growth will remain weak, she noted.

Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...