Flaherty pleased with G20 progress on adopting 'credible' fiscal policies

Associated Press

MOSCOW - Finance Minister Jim Flaherty says leaders from the world's top 20 economies have made progress when it comes to balancing fiscal discipline and economic growth.

Flaherty says he's pleased by the G20 leaders' pledge to adopt "credible, medium-term fiscal strategies" in line with their past commitments by the group's next meeting in September.

The minister made the comments this morning in a conference call following the two-day summit in Moscow.

The meeting was taking place amid speculation of a "currency war" in which countries devalue their currencies to gain a competitive edge.

It ended with a joint communique that included a promise that the G20 members would "refrain from competitive devaluation" and "resist all forms of protectionism and keep our markets open."

If too many countries try to weaken their currencies for economic gain — sparking a so-called "currency war" — the fragile global recovery could be derailed.

The Japanese yen has been the currency primarily in focus. It fell to a 21-month low against the U.S. dollar this week and a near three-year trough against the euro.

Japan, the world’s third-largest economy, faces charges that it is trying to lower the value of the yen to stimulate its economy.

-With files from The Associated Press

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