"Sometimes I think naturally there is an instinct to focus on the disagreements because otherwise these summits might not be very exciting, it's just a bunch of world leaders sitting around intervening, so there is a search for drama,"
President Barack Obama says he and other leaders of the G20 meeting in Seoul reached broad agreement on actions to continue moving the world toward sustained and balanced growth. Mr. Obama spoke as G20 leaders issued their Seoul Action Plan, which they say will help further strengthen the global economy.
President Obama spoke in a news conference at the conclusion of the G20 summit, as leaders issued a communiqué endorsing gradual changes in currency values.
Leaders and aides worked through Friday to come up with compromise language against the backdrop of the U.S. dispute with China over Beijing’s currency policies.
Without mentioning China by name, G20 members say they should refrain from competitive devaluation of currencies, and move toward more market-determined exchange rate systems.
QE2 may accelerate wane of U.S. dollar as world’s reserve currency
“In addressing its domestic problems, the U.S., however, brings problems for other countries,” said Zhuang Jian, a senior economist with the Asian Development Bank.
BEIJING, Nov. 12 (Xinhua) — As G20 nation leaders gather in Seoul to seek common ground in an effort to revive the global economy, the recently announced new round of quantitative easing by the U.S. has cast a shadow over the gathering, as concerns grow about the stability of the U.S. dollar as a global reserve currency.
In order to stimulate its economy and cut its high unemployment rate, the U.S. Federal Reserve last week decided to buy 600 billion U.S. dollars of U.S. Treasury securities and other assets held by banks in an apparent effort to encourage exports. But the announcement immediately attracted wide-spread criticism.
Experts say that even if the U.S. has the right in rolling out domestic policies to drive growth, it still should consider the “spill-over” effects the policies may have on other economies.
They say the second round of the quantitative easing, known as QE2, may further weaken the dollar, drive up oil and commodity prices and exacerbate inflation.
SEE ALSO: G20 or G2?, G20 to tackle US-China currency concerns
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Tags: China, Dollar, Economy, G20, International, Media, News Item, Obama
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