Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (7548)	10/3/1998 10:19:00 PM
From: Joseph G.	Read Replies (2) \| Respond to of 86076

<<Bundesbank chief sees no revamp of global order WASHINGTON, Oct 3 (Reuters) - Bundesbank President Hans Tietmeyer on Saturday rejected the concept of a total revamp in the global financial order, embracing instead the idea of fine-tuning the current structure. Referring to a communique issued after a meeting of the Group of Seven industrialized nations, Tietmeyer told a news conference: ''You will not find the words 'new architecture' in this.'' ''The issue is strengthening of the architecture. We need architects to build up the architecture stably and use it solidly.'' Tietmeyer said radical proposals to prevent volatility on global markets had not been discussed at the meeting of the G7 on Saturday. Asked specifically whether a French proposal for exchange rate targets on a global scale had been brought up, he said: ''This was not discussed here, it was not brought up by the French. There were other things to discuss and these were discussed.'' Tietmeyer said that a series of proposals that had been agreed at the G7 meeting were aimed at ensuring that the International Monetary Fund could act as a catalyst to resolve crises in distressed countries. ''This was not about capital controls or patent recipes but about having a solid policy as a basis, better crisis prevention through transparency, ensuring that the Fund acts as a catalyst in crises and ensuring that the private sector is also involved and that the Fund has the necessary means at its disposal for this.''>> <<WASHINGTON, Oct 3 (Reuters) - Bundesbank President Hans Tietmeyer said on Saturday that there had been no criticism of German interest rate levels at a meeting of the Group of Seven industrialized countries on Saturday. ''There was no criticism of German monetary policy,'' Tietmeyer told a news conference after a one-day G7 meeting. Tietmeyer added that International Monetary Fund (IMF) Managing Director Michel Camdessus had also made clear both in bilateral talks and in the plenary session that he was not urging an interest rate cut in Germany either. Rather, the position of the IMF was that interest rate convergence in Europe should trend toward the lower end of Europe's interest rate spectrum, he said. ''The view was that convergence in Europe should go towards the German level,'' he said. European countries which will join their currencies in the euro at the end of this year need to find a common interest rate level by the year-end. Currently interest rates have a gap of about three percentage points, with Germany at the lower end. Turning to the sharp decline in world stock markets in recent months, Tietmeyer said it was inappropriate to see this as a ''catastrophic situation''. He said stock market prices had been at a high level and at least part of the fall was simply a correction from these high levels. ''I will leave open the question of whether this correction has been overdone.'' he said. He said central banks worldwide would continue to observe the situation on global markets closely, but added that monetary policy could not resolve problems which had not been created by an inappropriate monetary policy stance. >>