Trichet says G7 agree on economic measures needed in US, euro zone, Japan
Thursday, January 13, 2005 4:27:43 PM
afxpress.com
FRANKFURT (AFX) - European Central Bank president Jean-Claude Trichet said there is a strong consensus among G7 countries about the economic measures that are needed to correct global current account imbalances
The euro zone and Japan both need to implement structural reforms to boost their growth potential and the US has to boost its savings rate, he said
[lovely concensus - when does action start? Will it do any good? Why? For who? mish]
"The present global consensus...is that we all have homework to do. There is a consensus of the international community to consider that structural reforms are of the essence in the euro area and in Europe as a whole because it is the appropriate way to elevate the growth potential," he told an ECB news conference
"There is also a consensus to say the same as regards Japan, and note the savings issue in the US as being a very important question for them," he added
[Let's see there is a concensus that Japan needs to consume .... But the Japanese are not buying stuff. So what good does that concensus do? mish]
Trichet said this consensus is also shared by the G10 group of central bankers, which he chairs
And he said there is also a G7 consensus that the currencies of some emerging economies in Asia need to appreciate, as has been stated in the communiques issued after several recent G7 meetings
[Here is another lovely concensus. How useful is it when Japan does not want the YEN to rise and China is pegged. Mish]
Trichet declined to comment on how he and euro group president Jean-Claude Juncker would react if the US called for more stimulatory euro zone monetary and fiscal policies at the Feb 4-5 G7 meeting in London
[Oops - loosk like we have a non consensus. The US wanta Europe to cut rates and Europe wants to raise them (but they cant because of the Euro). The US wants the EU to consume more but like the Japanes, Europeans do not want to consume more. mish]
Juncker attended today's ECB council meeting
Trichet said he had praised US Treasury Secretary John Snow' recent commitment to take steps to support the dollar, particularly by working to curb the US budget and current account deficits, because he considered this an important statement
[If ever there was a lie, that "committment" was it. mish]
"When things are said that are, in my opinion, important and excellent, why not mention it?" he said
Speaking after the G10 central bankers' meeting on Monday, Trichet praised Snow's restatement of the US administration's strong dollar policy and his commitment to tackle US deficits
Trichet today declined to comment on yesterday's news that the US trade deficit widened to a record 60.3 bln usd in November, which weighed on the dollar, but he indicated that the trade deficit is part of the problem of global current account imbalances
"I don't comment on figures that are produced on a month to month basis, but as one of the risks that we have at a global level in the economy...there is certainly the constellation of imbalances," he said
[Splotto that is a catchy phrase "constellation of imbalances" let's get a trademark on it. Mish] |
