PARIS (MNI) – The recent re-widening of global imbalances is posing
a challenges for monetary policy cooperation, European Central Bank
President Jean-Claude Trichet warned Friday.
“After some partial reduction induced by the crisis, global
imbalances have started to widen again and this poses challenges for
international monetary cooperation and financial cooperation and
exchange rate relationships,” Trichet said.
Speaking at a conference on the G20 meetings, Trichet said that
France’s decision to focus the presidency of the G20 on global
imbalances “is extremely Welcome”.
“I have to say that I think we have to think deeply about how we
can make the international monetary system … more resilient to such
imbalances and policy structures more flexible in addressing them,”
Trichet said.
Trichet pointed out that the Eurozone has “a current account which
is broadly balanced.” Still, that “does not mean that we do not have an
immense stake” in effective global re-balancing, he added.
–Frankfurt bureau, +49-69-720142, jtreeck@marketnews.com
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