Coun­tries should use all pol­icy levers to sup­port econ­omy: Lew

The Pak Banker - - COMPANIES/BOSS -

US Trea­sury Sec­re­tary Jack Lew on Fri­day urged coun­tries to avoid com­pet­i­tive de­val­u­a­tion and said it was in­creas­ingly im­por­tant to use all avail­able pol­icy tools to ad­dress a short­fall in global de­mand.

Lew was speak­ing to re­porters on the side­lines of a G20 meet­ing of cen­tral bankers and fi­nance min­is­ters be­ing held in Shang­hai. "It is in­creas­ingly im­por­tant to use all the levers of pol­icy that are avail­able, and that means us­ing fis­cal levers as well as mon­e­tary pol­icy and struc­tural re­forms," he said.

"(There's a) need to avoid com­pet­i­tive de­val­u­a­tion, that's com­pet­ing in a beg­gar-thyneigh­bor way for shar­ing a pie that's ei­ther frozen or shrink­ing and it doesn't lead any­where good." Lew said he be­lieved China had the nec­es­sary pol­icy tools to ac­com­plish its eco­nomic tran­si­tion, but that it needed to stick to its re­form agenda and com­mu­ni­cate poli­cies, es­pe­cially those on its ex­change rate, clearly. He also said that the U.S. econ­omy was do­ing "quite well", with strong job cre­ation and pri­vate sec­tor growth, and con­sumer de­mand re­main­ing strong.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.