France wants broad de­bate to push G20 goals: La­garde

The Pak Banker - - International3 -

PARIS: France wants a wide in­ter­na­tional de­bate as it takes over the G20 pres­i­dency to drive its plans for an over­haul of the global mon­e­tary sys­tem and eco­nomic gov­er­nance, Econ­omy Min­is­ter Chris­tine La­garde said on Satur­day.

La­garde told a meet­ing of some of France's top eco­nomic pol­i­cy­mak­ers and thinkers that the 2008-09 cri­sis had shown the need to re­think a mon­e­tary frame­work based on 40-yearold ideas that are in­creas­ingly out­dated.

France wants to fo­cus on ways to con­trol the huge and er­ratic shifts in cap­i­tal that buf­fet emerg­ing economies and on mov­ing away from the dol­lar as a re­serve cur­rency to a di­ver­si­fied sys­tem that would re­duce im­bal­ances. La­garde sug­gested the In­ter­na­tional Mon­e­tary Fund could act as a ref­eree to con­trol cap­i­tal flows, rather than hav­ing coun­tries uni­lat­er­ally im­pose re­stric­tions. She also said France would push the idea of the IMF's Spe­cial Draw­ing Right ac­count­ing tool play­ing a big­ger role as a re­serve unit. "I'm con­vinced at this point in time, now that the height of the cri­sis is be­hind us, that we need to step back, we need to take stock and we need to work now to­ward more sub­stan­tial, more struc­tural changes that are needed," La­garde told a fo­rum hosted by the Paris-based Rein­vent­ing Bret­ton Woods Com­mit­tee. "France does not have the am­bi­tion to pro­pose ready-made so­lu­tions ... We don't have a magic stick," she added. -Ap

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