SHANGHAI (Reuters) – The heads of the world’s leading economies said on Saturday that the world needs to look beyond a flexible monetary policy to achieve balanced growth.
in a joint statement issued at the end of the two-day conference brought together central bankers and finance ministers of the G20 in Shanghai, participants repeated their earlier promises not to advocate for competitive devaluations coins and pledged to “consult closely” on the currency markets.
Those responsible for the G20 belonging to the major developed and emerging economies said they would use “all political instruments – monetary, fiscal and structural – individually and collectively” to strengthen growth and financial stability.
The statement specifically noted that countries should develop a fiscal policy and a “linked to growth as possible” public spending, while investment should prioritize high quality.
However, the statement also said: “Monetary policies will continue to support economic activity and ensuring price stability, thanks to the mandates of central banks, but monetary policy alone can not lead to balanced growth. ”
The G-20 should “use a flexible fiscal policy to strengthen growth, job creation and confidence, while improving the resilience and ensure that the debt as part of GDP, is placed on a sustainable path, “they said.
The group said that structural reforms could play an essential role in boosting productivity and future results.
The geopolitical situation also figured in the statement.
“The downside risks and vulnerability have increased,” he said, citing as its backdrop the volatility of capital flows, the falling prices of raw materials, the “impact” would an output of UK EU and increasing the number of refugees in Europe
(Reporting by Kevin yao, Jan Strupczewski, Adam Jourdan, Gernot Heller and Brenda Goh;. Written by Pete Sweeney; Editing by Ana in Madrid Vicario)
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