Clashes over policy at Shanghai G20 meeting

Section:

By Robin Harding in Shanghai and Tom Mitchell in Beijing
Financial Times, London
Friday, February 26, 2016

Finance ministers and central bankers clashed on Friday over issues ranging from the need for global stimulus to negative interest rates, suggesting they were unlikely to agree on "bold" measures urged by the International Monetary Fund earlier this week.

"The debt-financed growth model has reached its limits," Wolfgang Schäuble, German finance minister, said on the sidelines of a two-day G20 meeting in Shanghai. "We therefore do not agree with a G20 fiscal package as some argue .  ... There are no short-cuts that aren't reforms."

Mr Schäuble also expressed his scepticism about further monetary easing in the eurozone, saying policy was "extremely accommodative to the point that it may even be counterproductive in terms of negative side effects on banks, policies and growth."

Michel Sapin, French finance minister, said a co-ordinated boost to demand was a long way off.

"We are absolutely not talking about a global fiscal stimulus package," he said. "We're not there at all. In France we don't have the means to do this just yet. Other countries have more capacity and they can use this capacity to continue to support global growth."

Such countries include Germany and China, whose central bank governor said Beijing had additional scope for monetary and fiscal stimulus.

Others expressed disappointment at the apparent lack of urgency in Shanghai. "I don't think this is a meeting where there will be some big decision," said one G20 official who asked not to be identified. ...

... For the remainder of the report:

http://www.ft.com/intl/cms/s/0/f1583f3e-dc5b-11e5-a72f-1e7744c66818.html



ADVERTISEMENT

USAGold: Coins and bullion since 1973


USAGold, well known for its Internet site, USAGold.com, offers contemporary bullion coins and bullion-related historic gold coins for delivery to private investors in the United States, Europe, Canada, Australia, and New Zealand. It is one of the oldest and most respected names in the gold industry, with thousands of clients and an approach to investment that emphasizes guidance and individual needs over high-pressure sales tactics. The firm's zero-complaint record at the Better Business Bureau makes it an ideal match for the conservative, long-term investor looking for a reliable contact in the gold business.

Please call 1-800-869-5115x100 and ask for the trading desk, or visit:

http://www.USAGold.com

USAGold: Great prices, quick delivery -- all the time.



Join GATA here:

Mines and Money Asia
Tuesday-Thursday, April 5-7, 2016
Hong Kong Convention and Exhibition Centre
Hong Kong Special Administrative Region, China

http://asia.minesandmoney.com/

Mining Investment Asia
Wednesday-Friday, April 13-15, 2016
Marina Bay Sands, Singapore

http://www.mininginvestmentasia.com/

Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16