G20 member nations were decidedly cool towards the US-backed proposal that would set targets for the reduction of current account imbalances. This would require countries with a trade surplus to reduce these surpluses to about 4 percent of their Gross Domestic Product (GDP).
Countries with large trade surpluses were particularly reticent to entertain Geithner’s scheme. German Economy Minister Rainer Bruederle warned of falling back into “planned economy thinking,” while Russian Deputy Finance Minister Dmitry Pankin said the draft communiqué to be issued on Saturday would stay clear of numerical targets.
Source: Reuters
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