G20 summit is not always set the pulse racing, but this week's finance ministers and central bankers meeting in Moscow, has a better chance than most caught the attention of financial markets.
Policy makers meet in a sensitive time with the U.S. Federal Reserve intentions slowed, and then exit bond purchase program has created $ 8.5 billion a month, Beijing's attempts to rebalance the world's most dynamic economies.
Only a moderate slowdown in China's economic growth in the second quarter, the commotion caused by the global financial markets, the Fed Chairman Ben Bernanke has been at pains to emphasize, if he thinks that the U.S. economic recovery is stronger evidence, he will stop printing money machine.
Nevertheless, the G20 group of major economies will seek to ensure that will not upset the apple cart.
Emerging countries have seen a huge investment outflows since the Fed announced its withdrawal from the plan, forcing policy responses around the world.
Indonesia and Brazil has raised interest rates, tightening liquidity Indian rupee fell to a record low, the central bank has intervened repeatedly to defend the Turkish lira.
IMF chief Christine Lagarde ? (Christine Lagarde) said on Tuesday: "The future is a key consideration lifting unconventional monetary policy need to be carefully phase and clear communication will be crucial,."
South Korea agreed with this problem, the Ministry of Finance requested that the Fed "is not only its domestic conditions, but also the global impact" before taking action.
Bernanke will not be in Moscow, but will give two days of testimony to the U.S. Congress earlier in the week.
Group of 20 (G20) including the formation of an important emerging economies has been limited discussion of the Group of Seven industrialized countries in.
Tuesday Canada refused to endorse criticism of the Fed in emerging markets. A senior Canadian official told reporters before the talks in Moscow welcomed the increase in the activities of the U.S. private sector and said that Canada would support the line management, it is in the cycle of economic policy.
Japan's top financial diplomat said Tokyo would ask questions, People's Bank of China on the wider impact of their actions. The bank attempts to control credit mainly shadow banking system.
"China is not necessarily the case is clear, it would be desirable to clarify a variety of data and problems," Mitsuhiro Furusawa, for International Affairs Vice Minister of Finance told Reuters reporters. "We are closely watching to see what is the real picture is in China."
Japan's remarkable economic stimulus plan will also be reviewed, particularly its commitment to structural reforms will have to accompany it.
Tokyo has so far got a free pass from the previously urged its continued economic growth in international gatherings. But there are deeper concerns.
"Most of the partners are increasingly losing patience with Japan," a G20 source said. "They want to see concrete structural reforms."
A document setting up the 27-nation European Union calls on Tokyo put in place, "the medium-term fiscal consolidation plans" and key structural reforms to promote sustainable growth position.
Furusawa said that Japan would ensure that its aggressive reflation policy aimed at weakening yen, will have a positive impact on the world economy G20 counterparts.
Ottawa has supported Tokyo's domestic economy against its unconventional policies, Canadian officials said, adding that not just in Japan but worldwide, it is necessary to carry out structural reforms. Such a reform would be an action plan to advance in September as part of the G20 summit.
About the impact of a strong dollar, emerging powers flexing their muscles. Brazil has links with Beijing, limiting the rise in dollar economic impact over its way, although it does not define what can be done, or whether the BRIC countries (Brazil, Russia, India, China and South Africa) to provide a united front.
"We are trying to cooperate more closely, in many ways, including a possible swap transactions," Russian Finance Minister Anton Siluanov, Thursday / Friday's summit will be held, told Reuters. "This process continues, but not fast."
Evade
G20 ministers will look at corporate tax evasion, which has become a hot political issue.
Economic Cooperation and Development (OECD) has been charged by the G20 to develop measures to prevent the transfer of profits of large companies to tax havens.
Preliminary draft plan, Reuters seen, indicating that the organization has identified some specific profit transfer programs, and for the specific changes in one to two years of international tax rules of the agreement.
A G20 official said the ministers endorsed the Organization for Economic Cooperation and Development's plan, while labor and finance ministers will issue a statement, balance job creation policies, efforts to reduce debt.
Crunch and the balance between economic growth is still a controversial subject, and three years ago, Germany's call, the specific debt reduction targets, follow-up targets.
"The United States more and more Europeans, who they believe are not doing enough to grow more and more angry," the official said.
In the tit-tat, the EU Reuters visible paper that the lack of a credible medium-term fiscal consolidation plans in the United States is a protocol risks to the global economy.
Group of 20 (G20) and so far not been able to agree to binding targets to reduce borrowing from the agreement reached in 2010 in Toronto, and officials said any new long-term debt target of hope quickly faded.
 



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