This past weekend, finance ministers and central bank governors of the world’s biggest economies, known as the Group of 20 or G-20, met in Sydney, Australia to have an annual meeting regarding the discussion of topics significant to the global economy. I will review one of the key topics discussed during this meeting and its importance to the protection of how we live our daily lives.
The most important point from the G-20 conference that I found interesting was that the G-20 officials set a target number for global growth for the first time. They ended the summit this past weekend saying that they would look to boost world growth by more than $2 trillion over the next five years. This target is thought to be attainable by the G-20 officials under a strategy that has been crafted by the International Monetary Fund.
This new target aims to increase private sector investment in big businesses within the advanced economies of the G-20. This will create millions of jobs and will be supported by the central banks.
Under the plan, emerging markets, or nations with social or business activity in the process of rapid growth and industrialization, will seek to restructure their economies and tame inflation, or the persistent increase in the general price level of goods and services.
What this potentially means for us in the U.S. is that easy-money policies will continue, but will be scaled back in a measured but accommodative approach. We should see more job creation and a stronger growing economy.
The efforts of the G-20 officials have not always prevailed, and the global outlook remains murky with the output of the largest emerging-market countries slacking. Governments and central bankers are hopefully encouraged by the G-20 talks to drive the global economy through this uncertain time.
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