G20 host Australia said Saturday it was confident of tangible results as a meeting of finance ministers and central bankers got underway, with fissures over US monetary policy looming large.
Australian Treasurer Joe Hockey has said he wants the summit to stay focused on ways to stimulate growth and create jobs in the aftermath of the 2008 financial crisis.
But the shockwaves being felt by emerging economies, which have suffered sharp capital outflows and losses to their currencies as a by-product of the Federal Reserve easing back its mammoth stimulus programme, remain a lightning rod issue.
Countries led by Indonesia and South Africa, which is not attending the Sydney meeting along with Mexico and Brazil, have called on the US to provide more clarity on its wind-back and better communication to subdue the impacts on emerging markets.
US Treasury chief Jacob Lew said the US had to act in its own best interests.
"My focus as US treasury secretary has to be on the core strength of the US economy and I think the world economy does better when the US economy is doing well," he was cited as saying by the Australian Financial Review at a finance function on Friday.
But Hockey appeared to side with the emerging economies, saying central banks in the world's most advanced economies should give each other better notice of policy changes to avoid turbulence.
"There has to be a policy, if you like, of no surprises," he said Saturday.
"I think if there is a policy of no surprises in relation to monetary policy activity and that central banks around the world have reasonable warning of what may be events that create market volatility, I think that's not unreasonable.
"I think that's what central bank governors are aiming for."
Bilateral meetings were to be held Saturday morning before a session on the global economy in the afternoon which will allow delegates to discuss the latest reports from the OECD, IMF and World Bank.
Delegates have been urged to agree on a range of strategies, from boosting global growth to cracking down on tax avoidance by global companies.
The OECD warned on Friday that declining global productivity would usher in a new and extended era of low growth unless reforms are accelerated.
These include freeing up labour markets, encouraging infrastructure investment and undertaking the structural reforms needed to boost domestic demand.
Hockey said he was confident the meeting would provide results with "a general mood of intention to deliver real outcomes".
"All the finance ministers and central bank governors I have spoken to understand that whilst the globe is facing some challenges, that there is some level of international market volatility.
"Through greater cooperation, realistic goals, and importantly a tangible process for achieving those goals, we can have very real outcomes this weekend," he said.
"I must say there is tremendous goodwill in all the meetings I have attended."
G20 host Australia said Saturday it was confident of tangible results as a meeting of finance ministers and central bankers got underway, with fissures over US monetary policy looming large.
Australian Treasurer Joe Hockey has said he wants the summit to stay focused on ways to stimulate growth and create jobs in the aftermath of the 2008 financial crisis.
But the shockwaves being felt by emerging economies, which have suffered sharp capital outflows and losses to their currencies as a by-product of the Federal Reserve easing back its mammoth stimulus programme, remain a lightning rod issue.
Countries led by Indonesia and South Africa, which is not attending the Sydney meeting along with Mexico and Brazil, have called on the US to provide more clarity on its wind-back and better communication to subdue the impacts on emerging markets.
US Treasury chief Jacob Lew said the US had to act in its own best interests.
“My focus as US treasury secretary has to be on the core strength of the US economy and I think the world economy does better when the US economy is doing well,” he was cited as saying by the Australian Financial Review at a finance function on Friday.
But Hockey appeared to side with the emerging economies, saying central banks in the world’s most advanced economies should give each other better notice of policy changes to avoid turbulence.
“There has to be a policy, if you like, of no surprises,” he said Saturday.
“I think if there is a policy of no surprises in relation to monetary policy activity and that central banks around the world have reasonable warning of what may be events that create market volatility, I think that’s not unreasonable.
“I think that’s what central bank governors are aiming for.”
Bilateral meetings were to be held Saturday morning before a session on the global economy in the afternoon which will allow delegates to discuss the latest reports from the OECD, IMF and World Bank.
Delegates have been urged to agree on a range of strategies, from boosting global growth to cracking down on tax avoidance by global companies.
The OECD warned on Friday that declining global productivity would usher in a new and extended era of low growth unless reforms are accelerated.
These include freeing up labour markets, encouraging infrastructure investment and undertaking the structural reforms needed to boost domestic demand.
Hockey said he was confident the meeting would provide results with “a general mood of intention to deliver real outcomes”.
“All the finance ministers and central bank governors I have spoken to understand that whilst the globe is facing some challenges, that there is some level of international market volatility.
“Through greater cooperation, realistic goals, and importantly a tangible process for achieving those goals, we can have very real outcomes this weekend,” he said.
“I must say there is tremendous goodwill in all the meetings I have attended.”
