February 15, 2013 / 11:16 AM / 5 years ago

UPDATE 1-Everyone has a stake in Japanese growth - Australia

* Japanese monetary policy aimed at growth is good - Swan

* Points to ECB, Fed policy as model

* Says G20 should not have one rigid set of fiscal targets

* Sees China moving on FX, orienting towards consumption

MOSCOW, Feb 15 (Reuters) - Australia indicated support on Friday for Japan’s monetary policy saying that as long as it was pro-growth it was appropriate, despite concerns by some that it was weakening the yen.

“Insofar as they are deploying fiscal and monetary policy to try to drive stronger economic growth, everybody’s got a stake in that,” Treasurer Wayne Swan told reporters ahead of a meeting of finance ministers and central bankers of the Group of 20.

The minister said it was up to Japan to characterize its initiatives, but said that it was the monetary policy of the European Central Bank and the U.S. Federal Reserve that was responsible for improved confidence in the last four to five months, demonstrating the need for active monetary policy.

“The actions taken by (ECB President Mario) Draghi in Europe and the actions taken by (Fed chairman Ben) Bernanke in the U.S. have been fundamental in getting a greater degree of confidence in the global economy in recent months,” Swan said.

He said that if developing countries were concerned about spillovers from such policies, there are means such as capital controls that are available under frameworks established by the International Monetary Fund.

The G20 is discussing language on foreign exchange, and Swan said: ”The G20’s always been a strong advocate of market-based exchange rates.

“The Chinese have been moving in that direction and ... they’ve also been engaged in a redirection of their economy towards greater domestic consumption.”

Addressing whether the G20 should set new fiscal targets beyond those set in the Toronto summit in 2010, he said there can’t be “one rigid set” of numbers.

“There are always going to be numerical targets... (But) it isn’t just one set of numbers. There has to be some room for country-specific and region-specific factors.”

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