The world’s leading economies have agreed on ways to measure dangerous global economic imbalances, but they acceded to China’s demand to drop its world-leading foreign cash reserves as one of the standards.
Finance chiefs of 20 dominant and emerging economies crafted the agreement in Paris on Saturday after all-night negotiations. They are hoping to prevent another global economic crisis like the financial meltdown that occurred in 2008.
The G20 summit negotiations were stymied by China, now the world’s second largest economy after the United States. The Chinese balked at including their $2.5 trillion in foreign exchange reserves as one of the measuring sticks of global economic health. The U.S. and some other Western nations have charged that China has kept its yuan currency weak in order to boost its exports, leading to huge Chinese trade surpluses.
The finance chiefs agreed to consider such factors as governmental debt and budget deficit levels, private savings and debt, trade balances and net economic investments as ways to measure the health of the world economy.
French Finance Minister Christine Lagarde described the discussions at the two-day meeting as “frank, sometimes tense.”
From: http://ping.fm/71EBf
No comments:
Post a Comment