Japan's Aso urges U.S. to communicate with markets on tapering
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[February 21, 2014]
By Tetsushi Kajimoto
TOKYO (Reuters) — Japanese Finance
Minister Taro Aso on Friday urged the United States to keep
explaining to financial markets how it plans to wind back its
massive monetary stimulus, noting the tapering is a good thing as it
reflects an improving economy.
Ahead of his departure for the Group of 20 finance ministers'
meeting in Sydney this weekend, Aso called on emerging market
economies to implement necessary reforms to guard against any
spillover from the U.S. tapering.
Global economic growth and ructions in emerging markets are set to
take centre stage at the G20 meeting, following turmoil in emerging
markets after the U.S. taper raised concerns of sharp capital
outflows and weaker growth.
"It is a good thing that the United States is starting to reduce its
quantitative easing as it reflects improvement in the U.S. economy,"
Aso told reporters after a cabinet meeting.
He noted that one impact has been a weakening of many emerging
market currencies as foreign capital is withdrawn, leading to
inflation pressures and funding concerns for those countries with
large current account deficits.
"It is important for emerging economies to correct these things by
making their own efforts," he said.
The G20 finance ministers and central bank chiefs are expected to
discuss emerging market economies, fiscal policies of advanced
economies and monetary policy, Aso said.
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With host Australia keen to focus on growth, he said Japan would
explain to its G20 peers its economic situation and efforts to spur
growth in the world's third-largest economy.
"Each country must steer economic policy by considering not just its
own situation but also others," Aso said. "We must do things in
accordance with international cooperation."
(Reporting by Tetsushi Kajimoto; editing
by Dominic Lau and John Mair)
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