Shanghai, China.- The German finance minister said Friday before meeting with their counterparts in Shanghai G20 opposition to programs fiscal stimulus, advocated by other powers as a formula to revive the world economy.
the Minister Wolfgang Schaeuble said at a seminar that monetary easing measures have proved to be “counterproductive” and that programs fiscal stimulus by increasing public spending “lost effectiveness”, AFP reported.
“the economic model based on debt has hit its limit,” he proclaimed Schäuble, who only sees a way out in the “reforms structural “.
a warning that seems to go against many countries that form the club of industrialized and emerging powers of the G20, concerned about the deteriorating economic outlook because of the slowdown in China, the collapse of oil prices and raw materials and the incessant turmoil in financial markets.
So, the European Central Bank (ECB) seems determined to redouble their efforts to give impetus to the eurozone and the US Federal Reserve (Fed) is increasingly more cautious on whether to back up their interest rates, after having increased in December for the first time in nine years.
the Bank of Japan (BoJ), meanwhile, did not hesitate to adopt negative rates, hoping to stimulate lending and ward off the risk of deflation.
the Chinese central bank (PBOC) also proclaimed Friday its willingness to “preserve room for maneuver” to ease monetary policy.
ACCOUNTS SANE VS DEBT
The recipe Schäuble to boost the world economy is known: to launch structural reforms, starting with cleaning up ” prudently “public accounts.
” If you really want the real economy strengthens, there is a possible shortcut without reforms, “he said the minister, who said” think of new recovery plans only distracts us of the actual tasks to which we must apply “.
Germany is the largest economy in the European Union (EU), but its members seem unwilling to share the intransigence of Schäuble in financial orthodoxy.
French Finance Minister Michel Sapin, made known from Hong Kong who agreed that it would be “inopportune launch a comprehensive program of fiscal stimulus,” but felt that countries with higher budgetary capacities should use them to “hold overall growth. “
the governor of the Bank of England, Mark Carney, and in Shanghai, also took distances Berlin.
” Some commentators spread the myth that monetary policies they would have exhausted their ammunition, “regardless of the world” runs the risk of being caught between a mediocre growth, low inflation rates and extremely low interest “.
the stimulus measures could allow” you gain time to implement structural reforms, “he argued.
This position coincides with the recent call by US Treasury Secretary, Jack Lew, to “draw by mutual agreement” to policies of fiscal and monetary stimulus.
The Organization for Cooperation and Development (OECD) admitted that stimulus measures may be necessary, but these do not exclude the obligation to reform.
“structural reforms, combined with measures to support demand, remain highly desirable to strengthen durably productivity and job creation, “said a report of that entity from 34 countries, mostly in the developed world.
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