The G-20 also pledged to maintain existing stimulus plans and take Ã¢â‚¬Å“concerted actionsÃ¢â‚¬Â to sustain the recovery. Recent events highlight the need to establish Ã¢â‚¬Å“properly phasedÃ¢â‚¬Â plans to rein in deficits. Emerging market economies pledged to take measures to strengthen social safety nets, raise infrastructure spending and enhance exchange rate flexibility.
The statement includes targets championed by Canadian Prime Minister Stephen Harper, who sought to narrow differences between the U.S. and Europe by proposing minimum deficit and debt reduction goals.
Spend now, repent later. Should be good for those who think deficit spending leads to weaker currencies.
This is more about the faith in a government than the currency at present but, eventually, it does affect the currencies, especially those in nations that are in decline, like the U.S. has been for decades.
- Prof. JP