G-20 Overcomes China Opposition to Agree on Imbalance Yardsticks

Group of 20 finance chiefs overcame Chinese opposition to start crafting an early warning system to detect when economic fault lines are opening that may imperil global growth.

Seeking to smooth lopsided trade and investment flows which helped plunge the world into a credit crisis and recession, the G-20’s finance ministers and central bankers concluded talks in Paris on Feb. 20 by listing the yardsticks they will monitor to see whether imbalances are forming. Among them: budget deficit levels, the external imbalance and private savings rates.