SYDNEY Feb 24 The world's top economies have
adopted a soft target of adding at least 2 percentage points to
growth over five years, a source said, signalling optimism that
the worst of crisis-era austerity was behind them.
The following are key points from the communique at the
conclusion of the Group of 20, according to the source.
"We commit to developing new measures in the context of
maintaining fiscal sustainability to significantly raise global
growth. We will develop ambitious realistic policies with the
aim to lift collective GDP by more than 2 pct above the
trajectory implied by current policies."
We recognize that monetary policy needs to remain
accommodative in many advanced economies, to normalize in due
course with the timing being conditional on the outlook for
price stability and economic growth.
This eventual development will be positive for the global
economy and reduced reliance on easy monetary policy would be
beneficial on the medium term for financial stability.
All our central banks maintain that monetary policy settings
will continue to be carefully calibrated and clearly
communicated in the context of ongoing exchanges of information
and being mindful of the impacts on the global economy.
As markets react to various policy transitions and country
circumstances, asset prices and exchange rates adjust.
This might sometimes lead to excessive volatility and that can
be damaging to growth. While many economies are prepared for
this, our primary response is to further strengthen and refine
our domestic macroeconomic structural and financial policy
frameworks. Exchange rate flexibility can also facilitate the
adjustment of our economies.
Some economies will need to rebuild fiscal buffers where
policy space is eroded and we will consistently communicate our
actions to each other and to the public and continue to
cooperate on managing spillovers to other countries and to
ensure continued effectiveness of global safety nets.
We deeply regret that the IMF core and governance reforms
agreed to in 2010 have not yet become effective and that the
15th general review of quotas was not completed by 2014. Our
highest priority remains ratifying the 2010 reforms and we urge
the U.S. to do so before the next meeting in April.