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Tensions because of the cash flow is not in the interest of the global economy
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04/13/2014 15:22:00
Despite the agreement of senior officials rich and poor economies in recent times to improve the global economy, but they seem worried.
For the poor countries lead the policies of monetary easing in advanced economies to a large fluctuation in capital flows, which could destabilize the emerging markets while rich nations, she believes that the hoarding of currency in developing countries hinders progress towards greater global economic stability.
It seems that the tensions that have built up over the years has been exacerbated during the meeting of finance ministers and central bank governors at the Group of Twenty in Washington last week and demonstrated harsh words in the statements from Washington and Delhi on it.
It says rich countries and poor countries it operates in order to achieve their interests and make rationale adduced by each party to the dispute can not be resolved.
Despite the agreement on the Group of Twenty global economic conditions improve, but the tensions indicate lack of progress in rebalancing the global economy rather than what we see now borrow a huge part of the rich countries for imports from poor countries.
Raghuram Rajan said India's central bank governor before a committee before the meeting of the Group of Twenty, "the situation is safe."
Rajan has become one of the most prominent pro-reform of the global monetary system and called for central banks in developed countries, monetary policies in order to avoid a trial could harm the global economy.
He said that monetary easing policies that have been applied over the years in developed countries, emerging markets pushed to retain larger reserves than the dollar so that they can intervene in currency markets to protect their economies as a result of the high volatility of capital flows.
The growing need for hoarding currencies as seems to be the United States, Europe and Japan will keep its monetary easing policy for several years to come.
Said Alexander Tombini Governor of the Central Bank of Brazil from the policies of the rich countries "should be studied and yield effects that extend to other economies."
According to the developed countries, especially the United States stating that the stimulus efforts of emerging economies by supporting the global economy and adds that the adoption of the poor to intervene in currency markets inhibits the global economy.
Gathered most of the emerging markets of dollar reserves to keep their currencies low to stimulate exports, pushing developed countries to borrow to cover the value of imports.
It is believed a large number of economists that the heavy borrowing in the United States the largest consuming country in the world has fueled asset bubble that led to the financial crisis between 2007 and 2009.
The official said the U.S. Treasury "resistance of many emerging markets to move faster Botbrh systems market-determined exchange rates hamper the rebalancing necessary to ensure global recovery strong and durable."
Officials reject the call Rajan rich countries to strengthen coordination on monetary policy.
Said Vitor Konsatncio Vice President of the European Central Bank that the trend for closer cooperation between policy makers will succeed only if allowed emerging markets rising value of their currencies, but this has not yet been achieved.
He told the same committee that occur before Tombini Rajan and "did not accept the emerging economies never raise the prices (currency) in any amount."
The root problem is that the central banks are trying to do their utmost because governments do little.
Most economists believe that the politicians could around the world that Pfalo more to help their economies grow, but rich countries are reluctant to rely on increased spending in excess of revenue is usually delayed while the emerging economies in the promotion of competition in their markets.
Prasad said the walls of the economic at the Brookings Institution and Cornell University The role of monetary policy in stimulating economic growth and maintain financial stability will not be amplified if active governments.
"We ended the case that central banks engaged in proxy wars for politicians unable to do not want to work is required. Do not see that things are going in the right direction."
PUKmedia for Reuters
[You must be registered and logged in to see this link.]
--------------------------------------------------------------------------------
04/13/2014 15:22:00
Despite the agreement of senior officials rich and poor economies in recent times to improve the global economy, but they seem worried.
For the poor countries lead the policies of monetary easing in advanced economies to a large fluctuation in capital flows, which could destabilize the emerging markets while rich nations, she believes that the hoarding of currency in developing countries hinders progress towards greater global economic stability.
It seems that the tensions that have built up over the years has been exacerbated during the meeting of finance ministers and central bank governors at the Group of Twenty in Washington last week and demonstrated harsh words in the statements from Washington and Delhi on it.
It says rich countries and poor countries it operates in order to achieve their interests and make rationale adduced by each party to the dispute can not be resolved.
Despite the agreement on the Group of Twenty global economic conditions improve, but the tensions indicate lack of progress in rebalancing the global economy rather than what we see now borrow a huge part of the rich countries for imports from poor countries.
Raghuram Rajan said India's central bank governor before a committee before the meeting of the Group of Twenty, "the situation is safe."
Rajan has become one of the most prominent pro-reform of the global monetary system and called for central banks in developed countries, monetary policies in order to avoid a trial could harm the global economy.
He said that monetary easing policies that have been applied over the years in developed countries, emerging markets pushed to retain larger reserves than the dollar so that they can intervene in currency markets to protect their economies as a result of the high volatility of capital flows.
The growing need for hoarding currencies as seems to be the United States, Europe and Japan will keep its monetary easing policy for several years to come.
Said Alexander Tombini Governor of the Central Bank of Brazil from the policies of the rich countries "should be studied and yield effects that extend to other economies."
According to the developed countries, especially the United States stating that the stimulus efforts of emerging economies by supporting the global economy and adds that the adoption of the poor to intervene in currency markets inhibits the global economy.
Gathered most of the emerging markets of dollar reserves to keep their currencies low to stimulate exports, pushing developed countries to borrow to cover the value of imports.
It is believed a large number of economists that the heavy borrowing in the United States the largest consuming country in the world has fueled asset bubble that led to the financial crisis between 2007 and 2009.
The official said the U.S. Treasury "resistance of many emerging markets to move faster Botbrh systems market-determined exchange rates hamper the rebalancing necessary to ensure global recovery strong and durable."
Officials reject the call Rajan rich countries to strengthen coordination on monetary policy.
Said Vitor Konsatncio Vice President of the European Central Bank that the trend for closer cooperation between policy makers will succeed only if allowed emerging markets rising value of their currencies, but this has not yet been achieved.
He told the same committee that occur before Tombini Rajan and "did not accept the emerging economies never raise the prices (currency) in any amount."
The root problem is that the central banks are trying to do their utmost because governments do little.
Most economists believe that the politicians could around the world that Pfalo more to help their economies grow, but rich countries are reluctant to rely on increased spending in excess of revenue is usually delayed while the emerging economies in the promotion of competition in their markets.
Prasad said the walls of the economic at the Brookings Institution and Cornell University The role of monetary policy in stimulating economic growth and maintain financial stability will not be amplified if active governments.
"We ended the case that central banks engaged in proxy wars for politicians unable to do not want to work is required. Do not see that things are going in the right direction."
PUKmedia for Reuters
[You must be registered and logged in to see this link.]
