Flaherty pleased with G20 progress on adopting 'credible' fiscal policies - Macleans.ca

Flaherty pleased with G20 progress on adopting ‘credible’ fiscal policies


MOSCOW – Leaders from the world’s top 20 economies have made progress when it comes to balancing fiscal discipline and economic growth, Finance Minister Jim Flaherty said after the latest G20 meeting.

Flaherty said Saturday he’s pleased by the G20 leaders’ pledge to adopt “credible, medium-term fiscal strategies” in line with their past commitments by the group’s next meeting in September.

“Too often this discussion has led to a false dichotomy between fiscal discipline and a pro-growth agenda. The bottom line is we need to strike the right balance,” he said in a conference call following the two-day summit in Moscow.

But he stressed it will take persistent effort to stabilize the global economy.

“The global uncertainty and the continuing fragility in Europe and the U.S. in particular remain a challenge to all of us, so we need to follow through on our past commitments in order to secure a strong recovery and strengthen the international financial and regulatory systems,” he said.

The G20 meeting was taking place amid speculation of a “currency war” in which countries devalue their currencies to gain a competitive edge.

It ended with a joint communique that included a promise that the G20 members would “refrain from competitive devaluation” and “resist all forms of protectionism and keep our markets open.”

The move came days after the the Group of Seven leading industrial nations warned that volatile movements in exchange rates can adversely affect the global economy.

The statement from the G7 group, which includes Canada, also affirmed their commitment to exchange rates determined by the markets and not government policy.

Bank of Canada governor Mark Carney also warned this week that the Canadian economy would suffer in a currency exchange war.

The Japanese yen has been the currency primarily in focus. It fell to a 21-month low against the U.S. dollar this week and a near three-year trough against the euro.

Japan, the world’s third-largest economy, faces charges that it is trying to lower the value of the yen to stimulate its economy.

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Flaherty pleased with G20 progress on adopting ‘credible’ fiscal policies

  1. you should thank the martin liberal goverment, jim”revlon man”flaherty for leaving you such a handsome treasury for you to gloat about today.the only problem is,we will never get the truth about how reckless your term was until the cons get thrown out of goverment.using canadian tax payers money to keep you and your cronies going in revlon cosmetics is not a responsible way to spend out taxpaying dollars.

    • “Revlon man”? I’ve never seen Flaherty in makeup. Is he a cross-dresser, too?

      • Actually, all the Con ministers put on makeup before press conferences. They are also directed to pose in certain ways for pictures, which Harper’s Ministry of Truth sends out to the press to convey some kind of agitprop.

        I like Canadian democracy better. Back then a minister would just scrum with reporters without makeup, scripts or other nonsense.

  2. We’re 5 years into this global economic mess, and except for a lot of meetings and fine dining, nothing has been done to solve the problem beyond nibbles around the edges.

    And Flaherty who’s brought about the largest deficit in our history….a structural one at that….hasn’t a leg to stand on in ‘approving’ anything.

    • Beat me to the punch. I think The Economist summed it up best: “Much of the country’s resilience stems from policies—such as bank regulation and sound public finances—which predate Mr Harper. ” (Of course, that was back in 2010. That resiliency has lost a lot of its bounce thanks to Harper’s and Flaherty’s collaborative incompetence…)

  3. There’s a rather off-colour term to describe pretentious gabfests like this but, instead, I’ll dismiss it as just another very expensive exercise in navel-gazing.

    • At least this one isn’t burning up a billion Canadian taxpayer dollars… (which probably has to be the most expensive photo op in the history of humanity… Oh the humanity…)