The world's rich nations pushed back on Friday against emerging market complaints about the spillover effects of their monetary policies, saying they had to get their own houses in order and get with the agenda of boosting global growth.
As finance ministers and central bank chiefs from the Group of 20 developed and emerging countries gathered ahead of a meeting in
Emerging nations want the US Federal Reserve to calibrate its winding down of stimulus so as to mitigate the impact on their economies and financial markets. Developed members reply that the troubles in the emerging world are mostly homegrown and domestic interest rates have to be set with domestic recoveries in mind.
A draft of the communique, reported by
Developed market policymakers see little risk of the recent market turmoil spiralling into the kind of contagion which prompted concerted and coordinated action from the G20 following the global financial crisis.
"Emerging markets need to take steps of their own to get their fiscal house in order and put structural reforms in place," US Treasury Secretary
That was a sentiment very much echoed by the finance ministers of
"It is important for emerging economies to correct these things by making their own efforts," Aso said in
Developing nations from
"QE tapering should be undertaken in a very orderly manner and carefully calibrated given the global economy today is very much interconnected," Hyun told Reuters, referring to quantitative easing, usually in the form of central bank purchases of bonds or other assets.
The head of the US Treasury also had pointed advice for other major nations, calling on
"I think it's a cross-cutting theme to what we see as the challenge for the global economy," said Lew.
"The US recovery is healthy and moving very much in the right direction and picking up velocity, but it can't make up for a lack of demand and growth in the other key economies."
And he's having some early success.
Setting such a growth target was "a good idea", IMF Managing Director
He won further support on Friday from
"If we could adopt a target, or an aspiration, that would be a good thing," Osborne said in
The need for some sort of fresh stimulus was highlighted by a grim report from the
It warned that sweeping reforms were urgently needed to boost productivity and lower barriers to trade to avoid a new era of slow growth and stubbornly high unemployment.
Yet the idea of setting concrete goals for the G20 has caused nothing but friction in the past, with proposals to target fiscal and current account deficits coming to nothing in the end.
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