Comments by policymakers at Cannes G20
CANNES, France (Reuters) - Following are comments on Thursday by policymakers attending the Group of 20 Summit in Cannes, France, and other euro zone officials, as Europe considered the possibility of Greece leaving the euro.
CHINESE PRESIDENT HU JINTAO
"At this critical moment, the G20 must work to address the key problems, boost market confidence, defuse risks and meet challenges, and promote global economic growth and financial stability.
"We should speed up the adjustment of our respective economic structures and endeavor to achieve fairly balanced growth of the global economy. To keep asking emerging markets to revalue their currencies and reduce exports will not lead to balanced growth. On the contrary, it would only plunge the global economy into a 'balanced recession' and make sustainable growth impossible.
"We should advance the reform of the international monetary system in a steady manner, expand the use of the SDR of the IMF, reform the SDR currency basket, and build an international reserve currency system with stable value, rule-based issuance and manageable supply."
U.S. TREASURY UNDER SECRETARY FOR INTERNATIONAL AFFAIRS LAEL BRAINARD
"Currency has been part of these conversations. I think you will see some language in the action plan on that. I think China is recognizing the role of greater exchange rate flexibility in helping to shift to domestic demand. It is one of the one of the most powerful instruments...that Chinese has at its disposal in the near term."
INDIAN PRIME MINISTER MANMOHAN SINGH
"In India, large segments of the financial sector especially banking and insurance is mostly state owned and equity holders and taxpayers are mostly one and the same. In this environment, it is difficult to see why a financial sector tax, which would only raise the cost of capital even further, would be appropriate." Continued...