Even the US is upping the ante on the G20 finance ministers meeting this weekend. Don’t expect a deal to come out of the meetings but even the Treasury says it is an important “stepping stone” toward an agreement on rebalancing, increased exchange rate flexibility.
Other than that, the comments from Treasury are all sticks and no carrots toward China…The official says inflexible exchange rates are bad for the global economic system and are harmful to countries with flexible systems. Resisting market forces should be front and center at the meeting, the official says.
The US is going to have to sweeten the pot to get China to suddenly toe the line….
