OTTAWA (Reuters) - Canada warned on Thursday about the re-emergence of worrying global economic behavior that preceded the recent worldwide recession.
“There’s some increasing uncertainty, particularly with respect to the imbalances. We’re starting to see some of the activities that we saw in 2007 and 2008, and we don’t want to have those kinds of imbalances in the world,” Finance Minister Jim Flaherty told CTV television in an interview from Washington.
“If you just look at the need for fiscal consolidation, for dealing with the books, the deficits, the debt in the United States, at the same time we need to have more currency flexibility by China and some of the other Asian countries.”
Flaherty is in Washington for meetings of the G7 and G20 rich and emerging nations, and said he hoped for an agreement in 24 hours on certain guidelines.
The minister said in response to a question that he was encouraged by U.S. President Barack Obama’s plans to slash the U.S. budget deficit by $4 trillion over 12 years, and said he would be discussing it with U.S. Treasury Secretary Timothy Geithner.
“All of us, certainly in the G7, G20, are encouraging the Americans to get to a solid medium- and long-term plan for the sake of stability in the global economy.”
Reporting by Randall Palmer; editing by Rob Wilson