Bank of England governor called G20 "Great Compromise".

<P> Bank of England Governor Mervyn King (MervynKing) 10 月 19 that the world should reach a "great compromise" to coordinate national economic and financial policies to avoid a new round of protectionist wave. .The same day, South African Finance Minister Pravin Gordon (PravinGordhan) not without concern, said that at present there is "a serious threat of competitive devaluation", "If we continue along this path, the result is a trade war" .. .</ P> <P> 10 月 22 日 to 23, to 11 months of the Group of Twenty (G20) summit in Seoul to prepare for the upcoming G20 meeting of finance ministers. .Announced a number of countries around the world intervene in currency markets, and the International Monetary Fund (IMF) annual meetings failed to effectively coordinate policies in the context of the parties, Seoul Summit, to be sent to major expectations. .</ P> <P> King said that the current policy of the major economies "direct conflict", the global economy to balance the need to "cooperate" action. .If countries can not find a common basis for cooperation, then the world will face trade barriers and increase the risk of weakening. .</ P> <P> "What is needed is to reach key members of the world economy 'Great Compromise'." King, 19, said, "This need to recognize the true path of economic adjustment agree on is very beneficial, .so as to avoid sliding into protectionism resulting from a series of devastating consequences. "</ P> <P> King also endorsed the Global investors are worried about: national self-interest and reduce the practice of currency exchange rates, .development of a global coordinated policy will flow in the void, and there is competition in trade each country will take measures to maintain their competitive advantage. .China has faced accusations of artificially low exchange rate, the U.S. and Europe, and Japan were criticized a large amount of liquidity injected into the emerging market countries. .</ P> <P> Commenting on why the most recent intervention in currency markets began sweeping across the world, the Shanghai Jiaotong University, Professor of Economics, Pan Yingli, said: "This is the U.S. old tricks. Be pressed a country exchange rate appreciation - the Plaza Accord in Germany .and Japan is an example - while a large number of issued local currency. The agency went to the currency speculators speculation, the appreciation of large capital inflows to the country. "</ P> <P> as today's world currency, the dollar, euro and yen .bear the monetary settlement, the international monetary reserve currency, and other functions. .In this case, if the three parties for their own interests and the implementation of ultra-loose monetary policy, will use the international monetary damage to the developing countries. .</ P> <P> King implemented a floating exchange rate of these developing countries known as the "innocent victims." .Now these "victims" is to fight back. .Brazil has improved in January, financial activities within the two tax (IOF) to control the inflow of foreign capital, India has also hinted that if the rupee appreciation over 43 may intervene in currency markets. .</ P> <P> However, this counter is powerless. .Japan's first intervention in the currency markets proved to be ineffective. .The Brazilian government on October 4 for the first time announced a doubling of the financial activities of tax to 4% since the real exchange rate was up 1.4%. .</ P> <P> Associate Dean of Economics, Fudan University Sun Lijian (blog) that only through the relative balance between G20 and other coordination mechanisms developed to solve the current problems facing the economy, because to allow self-help developed economies, the price is too .too great. .</ P> <P> "The risk is that, unless it can be coordinated to reach a generally acceptable way, or conflicting policies will inevitably reduce the level of global output, all countries will suffer." King said, "must be .recognize the action for the common good is necessary, otherwise, sooner or later there will be one or more countries turn to trade protectionism. "</ P> <P> However, King also believes that the challenges currently facing .great. ."Those who face long-term structural adjustment in order to reduce dependence on the export of surplus countries, who face short-term debt of the deficit countries to reduce public and private expectations, there are obvious differences." </ P> <P> Although the G20 summit of the controversy "natural .place ", but King suggests a lack of confidence on the G20 summit, he said, such agreements need to reach the real" revolution. " .</ P> <P> King of global policy coordination is not the only people who expressed concern. .October 16, European Central Bank President Jean-Claude Trichet said the global coordination of macroeconomic policy management framework, is the "least developed." .</ P>.