Officials from the world's biggest economies have agreed on the need for coordinated action to fight the global financial crisis, Australia's top economy official said.
‘I think there is a consensus on the need for coordinated and decisive action globally, going to first of all fiscal policy,’ Australian Treasurer Wayne Swan said on the sidelines of a meeting of the Group of 20 countries that covers the world's biggest economies.
‘It's very important that those countries which have the capacity to stimulate their economy do so.’
Mr Swan said there was also agreement on the need for a further loosening of monetary policy in different parts of the world.
Central banks from China to the US have already been cutting interest rates in a bid to offset the impact of the credit crisis on their economies.
The G20 meeting was attended by central bankers, including Ben Bernanke of the US Federal Reserve and Jean-Claude Trichet of the European Central Bank.
Officials agreed that any action needed to stabilize financial systems around the world should be taken and that there was a need for a ‘fundamental reform to the international financial architecture,’ Swan said.
He also expressed concern about World Bank forecasts for a slowing of economic growth in emerging economies.
