The debt crisis became a threat to world economy

Europe remains in debt

In brief: European Central Bank President Jean-Claude Trichet, in conjunction with Chinese Finance Minister Xie Syuyzhen and other colleagues from the twenty most important countries will gather on Friday at a meeting in the South Korean city of Busan to discuss the impact of European debt crisis in the global recovery.

Trichet has changed its approach to the exit strategy to stimulate the economy in connection with the most serious test of the European monetary system. Central banks in connection with the European crisis will have even longer to keep interest rates low.

Earlier, the European Union approved the establishment of a fund of 750 billion euros, or $ 918 billion package of measures for relief and redemption of bonds on the ECB’s troubled markets. But that decision has not been enough to reassure investors worried about the threat of the crisis of sovereign debt, which may prevent the restoration of the world economy. Fed Chairman Ben Bernanke said that the failure to reduce the U.S. deficit could minimize the recovery, and this led to an increase in borrowing costs. Finance ministers gather in Busan and will discuss ways to promote economic growth and fiscal consolidation. Finance Minister Timothy Geithner said the need for tax reform, which would be “conducive to the growth of the economy, French Finance Minister Christine Lagarde said the importance of restoring trust in public borrowing in order not to stifle growth.”

Ukrainian Globalist
2010-06-04 08:29, Economics.

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