By Simon Johnson
The April 2009 London summit of the G20 is widely regarded as having been a great success. The world’s largest economies agreed on an immediate coordinated approach to the global financial crisis then raging and promised to work together on banking reforms that would support growth. At the time, President Obama got high marks for his constructive engagement.
Group of 20 nations will affirm a commitment to avoid weakening their currencies to gain a trade advantage, according to a draft statement prepared for a meeting this week in Washington, Bloomberg BNA reported.
The statement, seen by a Bloomberg BNA reporter, maintains a February pledge to “move more rapidly toward more market-determined exchange rate systems and exchange-rate flexibility” and to refrain from competitive devaluations. Meetings of finance ministers and central bankers start Thursday.
MOSCOW (Reuters) - The Group of 20 nations declared on Saturday there would be no currency war and deferred plans to set new debt-cutting targets, underlining broad concern about the fragile state of the world economy.
Finance Minister Jim Flaherty’s criticism of U.S. monetary policy, which he ramped up last week in Washington, may be putting him at odds with the Bank of Canada and the Group of 20.
Flaherty said he criticized the Federal Reserve’s use of unconventional monetary policy known as quantitative easing at a private dinner of G20 officials on Oct. 10, with U.S. Federal Reserve Chairman Ben S. Bernanke in attendance.
WASHINGTON — Jim Flaherty usually finds his comfort zone in the company of global financial leaders.
A senior statesman among his peers, Mr. Flaherty’s views are often sought out by others who — grudgingly, perhaps — have envied Canada’s steady performance coming out of the recession, while many of their countries continued to struggle under financial crises and crumbling economies.
MOSCOW – Financial leaders from the world’s 20 biggest economies may have promised not to devalue their currencies to help exports, but the pledge will do little to keep exchange rates stable.
While G20 finance ministers and central bank governors can promise not to devalue their currencies directly, there can be no guarantees while central banks are pumping money into economies to make them grow again.
OTTAWA — Bank of Canada chief Mark Carney said he is unlikely to raise interest rates until economic growth surpasses 2% and inflation quickens, adding that personal debt levels and the housing market will also influence the timing of his next move.
The conditions for hiking rates are implied in the bank’s mandate to target 2% inflation, but Mr. Carney laid them out more bluntly than he has in the past in an interview with Global National Television that aired on Sunday.
OTTAWA — Finance officials from the world’s leading economies will be less focused on “currency wars” at meetings this week despite recent attention on Japan’s aggressive monetary policy, according to a senior Canadian finance official on Tuesday.
Western officials should have realised this Summit would be different when they arrived in Seoul to find their phones and blackberrys didn't work. The problem was that Korea's nationwide 4G network was too advanced. On early negotiating missions, key UK officials found themselves communicating with London via gmail, on rented phones.
That was never a problem in Pittsburgh, or Toronto. But as George Osborne liked to point out, this was the first G20 Summit not hosted by a G8 country - and, he might have added, the first where G8 countries didn't call the tune.