No solution possible, till the problem is identified -- these guys are focussing on 'joint solution method'
Davos Divines ‘Shared Norms’ as Reality Turns Grim on Sarkozy
By Simon Kennedy
Jan. 27 (Bloomberg) -- The global elite is failing to find the “shared norms in the new reality” preached by the World Economic Forum as lopsided growth and income inequalities split the international economy.
Delegates at the Swiss ski-resort of Davos identified rising food prices, North African unrest and competing remedies for an uneven global recovery as evidence of increased discord.
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Sarkozy’s Efforts
Seeking to narrow the differences is French President Nicolas Sarkozy, chair of the Group-of-20 and G-8 nations this year, who speaks in Davos at 11 a.m. local time.
“It is impossible to even begin to find solutions if we don’t try to find a shared diagnostic among our partners,” he told reporters in Paris on Jan. 24. “The new world is above all marked by an extraordinary change in the equilibrium among the world’s economic powers.”
That may be easier said than done. Even among the developed economies there are clashes over what monetary and fiscal policies are needed to deliver growth with the U.S. backing continued stimulus as Europe tries to retrench.
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Rates, China
As they try to clamp down on commodity-driven inflation, policy makers in the emerging economies that are driving the global rebound are also clashing with rich nations. They are divided over whether the easy monetary policy in the U.S. and Europe is flooding their economies with capital, threatening to inflate asset bubbles. Returning fire, the U.S. is pushing China to recognize its importance in the world by allowing its currency to appreciate further to stimulate domestic demand after allowing the yuan to rise just 3.7 percent against the dollar in the past year.
Behind the policy debate is a “trifurcated” world economy with emerging markets racing ahead, the U.S. beginning to gain ground and Japan and the euro-area still sluggish, said C. Fred Bergsten, director of the Washington-based Peterson Institute for International Economics.
“There’s a very differentiated global construct right now and it’s very difficult to have policy coordination” said Bergsten in Davos.
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“The norms if anything are diverging and won’t recover until the U.S. returns as an economic superpower,” he said.
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To contact the reporter on this story: Simon Kennedy in Davos, Switzerland at skennedy4@bloomberg.net
To contact the editor responsible for this story: John Fraher in Davos at jfraher@bloomberg.net
read whole thing -Bloomberg Jan 27/2010
Jan. 27 (Bloomberg) -- The global elite is failing to find the “shared norms in the new reality” preached by the World Economic Forum as lopsided growth and income inequalities split the international economy.
Delegates at the Swiss ski-resort of Davos identified rising food prices, North African unrest and competing remedies for an uneven global recovery as evidence of increased discord.
snip
Sarkozy’s Efforts
Seeking to narrow the differences is French President Nicolas Sarkozy, chair of the Group-of-20 and G-8 nations this year, who speaks in Davos at 11 a.m. local time.
“It is impossible to even begin to find solutions if we don’t try to find a shared diagnostic among our partners,” he told reporters in Paris on Jan. 24. “The new world is above all marked by an extraordinary change in the equilibrium among the world’s economic powers.”
That may be easier said than done. Even among the developed economies there are clashes over what monetary and fiscal policies are needed to deliver growth with the U.S. backing continued stimulus as Europe tries to retrench.
snip
Rates, China
As they try to clamp down on commodity-driven inflation, policy makers in the emerging economies that are driving the global rebound are also clashing with rich nations. They are divided over whether the easy monetary policy in the U.S. and Europe is flooding their economies with capital, threatening to inflate asset bubbles. Returning fire, the U.S. is pushing China to recognize its importance in the world by allowing its currency to appreciate further to stimulate domestic demand after allowing the yuan to rise just 3.7 percent against the dollar in the past year.
Behind the policy debate is a “trifurcated” world economy with emerging markets racing ahead, the U.S. beginning to gain ground and Japan and the euro-area still sluggish, said C. Fred Bergsten, director of the Washington-based Peterson Institute for International Economics.
“There’s a very differentiated global construct right now and it’s very difficult to have policy coordination” said Bergsten in Davos.
snip
“The norms if anything are diverging and won’t recover until the U.S. returns as an economic superpower,” he said.
snip
To contact the reporter on this story: Simon Kennedy in Davos, Switzerland at skennedy4@bloomberg.net
To contact the editor responsible for this story: John Fraher in Davos at jfraher@bloomberg.net
read whole thing -Bloomberg Jan 27/2010
posted by Walk a Kb or Two in my cassins | 8:12 am
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