The following are highlights of comments by finance ministers and central bankers in Washington this week for a meeting of the Group of 20 and the semiannual meetings of the International Monetary Fund and World Bank.
G20 COMMUNIQUE ON BANK LIQUIDITY
Central banks will continue to stand ready to provide liquidity to banks as required. We will ensure that banks are adequately capitalized and have sufficient access to funding to deal with current risks and that they fully implement Basel III along the agreed timelines.
G20 ON MONETARY POLICY
Monetary policies will maintain price stability and continue to support economic recovery
G20 COMMUNIQUE ON STRONG ACTION AND EUROPE'S PLEDGE
We are taking strong actions to maintain financial stability, restore confidence and support growth. In Europe, Euro area countries have taken major actions to ensure the sustainability of public finances, and are implementing the decisions taken by Euro area Leaders on 21 July 2011. Specifically, the euro area will have implemented by the time of our next meeting the necessary actions to increase the flexibility of the EFSF and to maximize its impact in order to address contagion.
G20 COMMUNIQUE ON EMERGING MARKETS AND FX FLEXIBILITY
The contribution of the emerging market economies to global growth will increase as these economies as a whole move toward more domestic-led growth, including through structural reforms and enhanced exchange rate flexibility to reflect economic fundamentals. We reiterate that excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability.
G20 COMMUNIQUE ON BANK CAPITALIZATION AND LIQUIDITY
We commit to take all necessary actions to preserve the stability of banking systems and financial markets as required. We will ensure that banks are adequately capitalized and have sufficient access to funding to deal with current risks and that they fully implement Basel III along the agreed timelines.
G20 ON ACTIONS BY THE U.S.
The U.S. has put forward a significant package to strengthen growth and employment through public investments, tax incentives and targeted job measures, combined with fiscal reforms designed to restore fiscal sustainability over the medium term.