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WASHINGTON, Oct 8 (Reuters) - The following are highlights of the International Monetary Fund and World Bank meetings on Wednesday in Washington, where finance ministers, central bankers and other top officials are gathering.
"It's a topic of relevance and it's understood that the U.S. economy is performing better than other major economies, and you should expect it to continue performing better. The appreciation of the U.S. dollar is to be expected."
"I don't think there's a risk of that in the market for the dollar, the yen, or the euro ... there's very deep liquidity."
"The Mexican peso has fluctuated up and down in the past few days, but it has done so in an orderly manner with plenty of liquidity, which is what we really look at. So in that sense, we're not concerned about the functioning of the exchange rate markets."
"How to evaluate that interest rate trend in (the) U.S., in Europe, in Japan, and in other places? We should be very close to see particularly spillover of some change of policy."
"This is a new challenge ... O.3 to 0.4 percent of inflation indeed is too low - a deflation threat."
"There has been a big drop of aggregate demand. Someone has to fill that gap."
SOUTH AFRICAN FINANCE MINISTER NHLANHLA NENE ON INFRASTRUCTURE SPENDING
"At the end of the day, infrastructure creates employment, economic growth, it crowds in the private sector."
ASKED IF THE RISE IN THE U.S. DOLLAR AGAINST THE EURO AND YEN WOULD BE AN ISSUE AT THE G20 MEETING:
"Inevitably there will be discussions between finance ministers and central bank governors about currencies and some of the movements are utterly predictable."
"With the cost of capital at record lows, the time is right for infrastructure investment."
"With key elements of the financial reform agenda substantially completed, our focus will shift to implementation. Policy uncertainty must be removed.
"We want the financial regulation architecture to be set up quickly for the next phase of global growth, so it can pick up emerging issues, as well as balance stability with risk-taking."
WHITE HOUSE DEPUTY NATIONAL SECURITY ADVISER CAROLINE ATKINSON
"The first and foremost discussion at the G20 (summit) this year, as is typical but I think with a little bit more of an edge than there has been recently, will be around growth and jobs. Because it's clear that we have been disappointed globally over a number of years by a failure to meet expectations."
"The U.S. economy continues to be a source of strength for the world, the IMF marked up the U.S. forecast. Real GDP rebounded in the second quarter and most forecasters are anticipating continued healthy growth in the U.S. through the end of this year and into 2015."
"In contrast the global picture is far less bright. With few exceptions, growth has slowed over the course of the year and deflation has become a key risk in some parts of the world. Global growth forecasts are being marked down, and risks are to the downside. In the euro area, the protracted recovery from the Great Recession has failed to gain solid and durable momentum and inflation remains dramatically low."
"For the United States global imbalances remain a major focal point ... (it's) true that current account imbalances have been reduced, notably in China and the U.S., but globally our feeling is that much of the adjustment in global imbalances is associated considerably with demand compression."
"A push for public infrastructure (spending) could be very beneficial ... funding costs are low."
Compiled by Reuters' IMF/G20 team