Monetary disputes have become a group of twenty (G20) Seoul Summit Spotlight focus.
On the G20 Summit in Seoul in held the previous week, the Fed announced today is "notorious" 6000 million second round of quantitative easing (QE2) measures the "neighbour" behaviour in the past weeks were European, Asian and South American countries.
Widely on the G20 Summit was reached on the substantive outcome, and it is expected that little hope G20 is likely will resolve the monetary framework for the discussion of the dispute to the International Monetary Fund (IMF).
The Fed move global "cheese"
Although the majority including the President, United States officials have repeatedly excuse, but on the question of the QE2, the Fed has obviously moved global Central Bank "cheese"-many States have condemned the fed through the purchase of 6000 million United States Government bonds and other assets, the fact is that the low dollar value, thus increasing the competitiveness of the United States economy. "You don't appreciate I devaluing" — the G20 Finance Ministers ' meeting "let market forces determine exchange rates" are transformed into "Let us forces to determine exchange rates".
EU Council President, rompe and European Commission President Barroso President of the United States this week four calls Obama the Fed quantitative easing in the near future.
China's Ministry of finance, Deputy Minister Zhu Guangyao said on 8 October, the US policy announcement "on the global financial market is a shock," and "hope of the United States including dollar, macroeconomic policies can contribute to the development of the world economy, not the contrary. ”
In contrast, Germany on this criticism sound more straightforward. Merkel said that Germany, the United States is "quantitative easing by artificially low rates to stimulate export", the policy is "short-sighted, and eventually it will damage the interests of all parties."
Germany's Finance Minister was roundly denounced Schaeuble United States acting hypocritical. He said the United States on the one hand, accused the Chinese manipulate exchange rate, on the other hand by printing to low dollar, this is difficult to justify.
Brazil's President Lula and even said to Seoul, are ready to "combat readiness."
Pressure of United States President Barack Obama arrived in Seoul this week four immediately after the other 19 Summit of Heads of State issued a letter to the position of the United States launched excuse.
In the face of the G20 members of criticism, Obama is-the world's need for United States economic recovery, and the United States economy will need more strong exports. This is not the same as the Fed Chairman Ben Bernanke said no, that is, the United States economy stronger is essential to global economic recovery, while the Fed is well aware of the US dollar in the world economy and the monetary system of the "special effects".
Although the response for criticism, but Obama's support for sound. Widely expected Obama or will face many of the "arguments", or even 19 to 1 embarrassing situation.
Current account target "not worthy of consideration"
According to the announcement of lecture notes, ahead of Germany Angela Merkel will be November 11 in the G20 Business Summit speech said that she would not be in the G20 Seoul Summit accepting any current account of the specific figures.
This is for the G20 Finance Ministers and Central Bank Governors meeting of the United States Treasury Secretary Geithner to States current account balance GDP control in 4% of the offer.
Merkel said that States should in a fair competitive environment to the product summary high, exchange rates should reflect national economic strength, the United States as the main economies often project budget proposals of the quantitative limit set to "not worthy of consideration".
Play the "rate card" of the United States had to repeatedly run into snags played "trade surplus with the card", but because the QE2 's wrath "provoked" the United States has tried to avoid talking about current account "goal" so as not to offend.
However, the US Federal Reserve Chairman Alan Greenspan before began to spearhead the "reserve" and "capital controls". Greenspan 10, author representation, the g-20 Summit should accelerate action to limit the size of foreign exchange reserves and the abolition of restrictions on capital flows, to promote the growth of global trade.
Although criticized United States currency authorities pursuing the weak dollar policy, but Alan Greenspan Siew, pointed out that China's high foreign exchange reserves also exist, called on the g-20 should be "through the IMF Institute an on foreign exchange reserves and capital flow management system".
G20 or monetary disputes for IMF
From 8, drafting of the Seoul Declaration to a certain extent implied by the Summit's outcome. Seoul Summit spokesman Kim Yun Kyung in Wednesday's news conference that the Deputy Finance Ministers of the States in the differences on key issues. Under this draft, the G20 will "prevent competitive exchange rate devaluation", and a few weeks ago by Kyung Finance Ministers ' meeting results wording.
Fudan University Professor, Dean of the Faculty of Economics Yuanzhigang told reporters that the G20 Seoul Summit is unlikely to produce substantive results: "cannot expect too much, the G20 meeting is unlikely to solve any problems. The current power structure, no one should take on the United States resulted in the restriction of the substance. "Hongyuan Securities Institute Chief Analyst Shao yu also on 10 July, the G20 commitments will remain at an ideal State.
G20 still suspense, but at least IMF assumed the role of the "police" the exchange rate is a foregone conclusion.
Canada finance charges sea extract (JimFlaherty) November 10, said that the G20 tend to be a monetary disputes the proposed framework for IMF addressed.
Fees to represent, the sea may require IMF G20 on Geithner's 4% of the current account surplus target "other options", and in 2011, for the next G20 meeting, the G20 leaders have yet to approve this plan.
No comments:
Post a Comment