adminSYDNEY. – The G20 holds its first meeting of the year this weekend with new Fed chief Janet Yellen in the hot seat as emerging economies suffer the side-effects of the US central bank’s exit from a mammoth stimulus spree.
Currencies from Argentina to Russia, South Africa and Turkey have been in free fall, in part because heavyweight US investors are repatriating funds in anticipation of higher returns at home as the Fed tightens years of relaxed monetary policy.
Deficit-ridden developing economies have plenty of their own home-grown problems, but the evolving “taper” has become a lightning rod for global discontent as Yellen makes her international debut in charge of the Federal Reserve.
Australian Treasurer Joe Hockey, who is chairing the meeting Saturday and Sunday of G20 finance ministers and central bankers in Sydney, wants to resist a “talkfest” and stay focussed on ways to stimulate growth and create jobs in the aftermath of the 2008 financial crisis.
“The G20 is at an important juncture.
“It must show it is able to act decisively to implement policy reforms outside of a global crisis.
“Complacency is our enemy,” he said, laying out a pro-growth agenda that was backed by US Treasury Secretary Jacob Lew in a letter to his G20 colleagues. – AFP.
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