A meeting of financial ministers from around the world criticized the EU and U.S. over their lack of policy to aid their faultering economies.The fiscal cliff was a particular target
In the “Communiqué of the Twenty-Sixth Meeting of the International Financial and Monetary Committee”:
We look forward to timely implementation of an effective banking and a stronger fiscal union to strengthen the monetary union’s resilience, and structural reforms to boost growth and employment at the national level. In the United States, resolving the fiscal cliff, raising the debt ceiling, and making progress toward a comprehensive plan to ensure fiscal sustainability are essential. In Japan, securing funding for this year’s budget and further progress in medium-term fiscal consolidation are needed.
And, among emerging nations:
Activity is slowing in emerging market and developing economies, reflecting weaker external and domestic demand and, in some cases, policy tightening to address inflationary pressures. Risks are compounded for some countries by falling prices for non-food commodities and upward price pressures on some food items. These economies will need to ensure flexibility in policy implementation to support growth, consistent with global rebalancing
For low income nations:
While growth remains buoyant in most low-income countries, fiscal and reserve positions have weakened and buffers need to be restored.
Too bad no one is listening
Douglas A. McIntyre