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G-20 Says Countries Can Act Against Capital Inflows

The Group of 20 said emerging markets facing a surge of capital inflows can adopt regulatory steps to cope, offering them cover to limit currency swings and stem asset bubbles as the U.S. adds $600 billion of liquidity.

“In circumstances where countries are facing undue burden of adjustment, policy responses in emerging-market economies with adequate reserves and increasingly overvalued flexible exchange rates may also include carefully designed macro- prudential measures,” leaders of the G-20 nations said in a statement today following a two-day meeting in Seoul.