Swan Backs Japan-to-U.S. Stimulus as G-20 Meets, Yen Slides

Australian Treasurer Wayne Swan said he supports Federal Reserve Chairman Ben S. Bernanke’s quantitative easing and Japanese Prime Minister Shinzo Abe’s reflation policy, in contrast to Europe’s hazardous pursuit of austerity as the world economy struggles to shake off the global financial crisis.

“Expansionary monetary policy can bring about a depreciation of the currency, but that doesn’t mean it is manipulation,” Swan said in an interview at the Bloomberg Australia Economic Summit in Sydney when asked about concern Japan is driving down the yen. “Thank god for the Fed,” he said in reference to its efforts to support U.S. growth.