Global growth top agenda as G7 meet­ing kicks off

Pakistan Observer - - ECONOMY WATCH - (JA­PAN)—Fi­nance

SENDAI min­is­ters and cen­tral bankers from the G7 kicked off meet­ings in Ja­pan Fri­day that could high­light a di­vide among the club of rich na­tions over cur­rency pol­icy and how to rev up global growth. The two days of talks will see host Ja­pan keen to win an en­dorse­ment for its po­si­tion that fis­cal stim­u­lus is the way to kick­start the world econ­omy, af­ter a rally in the yen hit the coun­try’s ex­porters and wors­ened a slow­down at home.

But Tokyo’s threat of a mar­ket in­ter­ven­tion to re­verse the rally could put it on a col­li­sion course with other G7 na­tions, in­clud­ing the United States and Ger­many which have ruled out such moves. French Fi­nance Min­is­ter Michel Sapin, at­tend­ing the talks at a fa­mous hot spring re­sort in a re­gion badly dam­aged by the 2011 quake-tsunami dis­as­ter, also waved off the idea of coun­tries gain­ing a trade ad­van­tage by ma­nip­u­lat­ing their own cur­ren­cies.

“To­day we are in a co­op­er­a­tion phase, and not in an in­ter­ven­tion or a cur­rency war phase,” he told AFP. The G7 group—also in­clud­ing mem­bers from Bri­tain, Canada.—AFP

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