G20 Finance Ministers and Central Bank Governors Release Statement

September 21, 2014

After meeting on the weekend in Cairns, Australia, finance ministers and central bank heads from the G20 released a statement that

  • Asserted “growth in the global economy is uneven and remains below the pace required to adequately generate much needed jobs. Downside
    risks persist, including in financial markets and from geopolitical tensions.”
  • Acknowledged the need for “eventual normalization of monetary policy in advanced economies.”
  • Prioritized the need for consistently faster economic growth.  Officials in this regard”agreed to a Global Infrastructure Initiative to increase quality investment, particularly in infrastructure.”
  • “Endorsed the finalized global Common Reporting Standard for automatic exchange of tax information on a reciprocal basis which will provide a step-change in our ability to tackle and deter cross-border tax evasion. We will begin exchanging information automatically between each other and with other countries by 2017 or end-2018, subject to the completion of necessary legislative procedures.”
  • Expressed  “concern about the human cost of the Ebola epidemic, and the potentially serious impacts on growth and stability in the affected countries and wider region” and called for a coordinated international response to the problem.”
  • Conspicuously had nothing to say about the challenge of climate change.  Prime Minister Tony Abbott of Australia, which hosts the November annual summit of G20 leaders and therefore has the role of setting its agenda, has thus far set climate change aside but faces mounting pressure to elevate its importance.

Back in the days when G20 finance ministers and central bank governors were the coordinating body of macroeconomic policy coordination, currency management was a prominent element of each released statement — for example, see this this chronology detailing the evolution of such statements from 9/11/01 to 10/27/08.  That hasn’t been the case since the G20 took over this role, and so it’s not surprising that today’s statement had nothing to say about the dollar, yen, rouble, yuan or euro.

Copyright 2014, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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