Flaherty Satisfied with G20’s Commitment to Adopt ‘Credible’ Fiscal Policies

The Finance Minister of Canada, Jim Flaherty, has recently acclaimed during a phone interview that the recent meeting of all G20 Leaders, i.e. world’s top 20 economies, has made substantial progress, especially on the issue of balancing fiscal discipline and economic growth.

Flaherty shared his views on Saturday, asserting that he is pleased by the unanimous promise of all G20 leaders to adopt “credible, medium-term fiscal strategies” in accordance with their previous commitments at least until the group’s next meeting in September. Flaherty was speaking in a conference call after the two-day summit in Moscow, when he stated that “too often this discussion has led to a false dichotomy between fiscal discipline and a pro-growth agenda. The bottom line is we need to strike the right balance.” However, he did stress that constant effort is essential to even out the global economy. He explained that “the global uncertainty and the continuing fragility in Europe and the U.S. in particular remain a challenge to all of us, so we need to follow through on our past commitments in order to secure a strong recovery and strengthen the international financial and regulatory systems.”

The meeting of G20 members was underway during speculation of a “currency war,” i.e. when countries devalue their currencies to gain a competitive edge. It was committed in a joint statement that all members of G20 promise to “refrain from competitive devaluation” and “resist all forms of protectionism and keep our markets open.”

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