Obama Urges G20 Nations to Maintain Stimulus

[TomCADem]

Source: NY Times

WASHINGTON — President Obama signaled on Friday that China should allow the value of its currency to appreciate and that countries in Europe should not withdraw their extraordinary spending programs too quickly.

In a public letter to other leaders of the Group of 20 nations in advance of a summit in Toronto next week, Mr. Obama wrote, “Our highest priority in Toronto must be to safeguard and strengthen the recovery.”

The letter did not mention countries or regions by name, but the implications of its language were clear. Mr. Obama wrote that “market-determined exchange rates are essential to global economic vitality” — a signal to the Chinese, who have been accused of holding down the value of their currency, the renminbi, to stimulate their export-oriented economy.

Mr. Obama also wrote, “We must be flexible in adjusting the pace of consolidation and learn from the consequential mistakes of the past when stimulus was too quickly withdrawn and resulted in renewed economic hardships and recession.”


Read more: http://www.nytimes.com/2010/06/19/business/global/19summit.html?hp

[Dawson Leery]

1. k/r #1