APEC draft: flexible exchange, interest rates critical
SINGAPORE, Nov 11 (Reuters) - APEC finance ministers will call for flexible interest and exchange rates as the group looks at redressing economic balances after the financial crisis, a draft statement from the Pacific Rim grouping said.
"We agreed that flexible prices, including exchange rates and interest rates, play a critical role in allocating resources efficiently, and can facilitate the adjustments needed to support balanced and sustainable global growth," said the latest draft statement by the finance ministers dated Nov. 10.
The 21 members of the Asia Pacific Economic Cooperation forum also said those economies with large external deficits will pledge policies to support private savings and get their finances in order, while keeping their markets open.
Those members with external surpluses will pledge to strengthen domestic sources of growth "allowing for the adjustment of demand and relative prices over the medium term" among other measures, the statement said.
As the member economies unwind economic stimulus policies, the ministers "recognised the need to reduce and stabilise public sector debt burdens to a low and prudent level".
APEC includes the world's three biggest economies -- the United States, Japan and China. (Additional reporting by Manny Mogato; Editing by Jan Dahinten)
