Sunday, November 7, 2010
Geithner Says India Sets Example With Flexible Exchange Rate
U.S. Treasury Secretary Timothy Geithner said India is demonstrating economic “dynamism” that comes from promoting internal growth while allowing currency flexibility, even as he reiterated the need for “key emerging economies” to move to market-determined exchange rates. According to Geithner, fast-growing developing nations need to reduce their dependence on exports to help the world economy strengthen. According to Geithner, growth is the #1 priority of the United States currently - “The most significant risk to the global economy today is that the world’s largest economies underachieve on growth." Should growth be the main goal of world economies right now?
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2 comments:
Clearly, the goal for world economies should be growth because it leads to better standards of living. More importantly, large economies such as the US should be achieving their target growth rates because many other smaller countries depend on large economies for their growth rates.
Looking at this from a more political perspective, the amount of coordination between US statements and Indian statements in the past week has been noteworthy. From Singh's comments praising US quantitative easing to Geithner's comments praising Indian currency flexibility... the two countries have obviously struck a very harmonious chord as the two nations' leaders met this week in India.
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