As finance ministers and central bank chiefs from the Group of 20 developed and emerging countries gather before a weekend 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 markets. Developed members reply that 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
"We commit to developing new measures to significantly raise global growth, while maintaining fiscal sustainability,"
"We recognise accommodative monetary policy settings in advanced economies will need to normalise in due course, in line with stronger growth."
Developed market policymakers see little risk of the recent market turmoil spiralling into the kind of contagion which prompted concerted and co-ordinated 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," he said. - Reuters.
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