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Brazil says US, not China, driving imbalances
Published on Thu, May 13, 2010 at 09:23 | Updated at Thu, May 13, 2010 at 09:29 | Source : Reuters
Brazilian Finance Minister Guido Mantega urged the United States on Wednesday to raise interest rates and allow the US dollar to appreciate in order to combat global economic imbalances.
In an interview with Reuters Insider in Brasilia, Mantega also called on the International Monetary Fund and the European Union to swiftly implement a massive rescue package for the euro zone to ensure success in combating Europe's debt crisis.
As Brazil's economic clout has grown in recent years, Mantega has become an influential voice in global economic affairs, particularly in forums like the Group of 20 rich and developing nations and the BRIC group of leading emerging economies. In addition to Brazil, the BRIC group includes, Russia, India and China.
On Wednesday he said the United States was also to blame for many of the woes afflicting the world economy.
"They must increase the interest rate in the United States ... to find a new currency balance," Mantega said. "The problem isn't China, it's the United States," he said, when asked about the impact of China's weak currency on global trade.
"The bigger responsibility is of the weak dollar," Mantega said, who said the greenback's weakness is a result of lower interest rates and excess credit in the United States.
"I've noticed there's a strategy by the United States and advanced countries to increase exports and reduce their imbalances at the cost of emerging markets," Mantega, a former economics professor, said at his office in Brasilia.
Brazil says US, not China, driving imbalances - Reuters -
Published on Thu, May 13, 2010 at 09:23 | Updated at Thu, May 13, 2010 at 09:29 | Source : Reuters
Brazilian Finance Minister Guido Mantega urged the United States on Wednesday to raise interest rates and allow the US dollar to appreciate in order to combat global economic imbalances.
In an interview with Reuters Insider in Brasilia, Mantega also called on the International Monetary Fund and the European Union to swiftly implement a massive rescue package for the euro zone to ensure success in combating Europe's debt crisis.
As Brazil's economic clout has grown in recent years, Mantega has become an influential voice in global economic affairs, particularly in forums like the Group of 20 rich and developing nations and the BRIC group of leading emerging economies. In addition to Brazil, the BRIC group includes, Russia, India and China.
On Wednesday he said the United States was also to blame for many of the woes afflicting the world economy.
"They must increase the interest rate in the United States ... to find a new currency balance," Mantega said. "The problem isn't China, it's the United States," he said, when asked about the impact of China's weak currency on global trade.
"The bigger responsibility is of the weak dollar," Mantega said, who said the greenback's weakness is a result of lower interest rates and excess credit in the United States.
"I've noticed there's a strategy by the United States and advanced countries to increase exports and reduce their imbalances at the cost of emerging markets," Mantega, a former economics professor, said at his office in Brasilia.
Brazil says US, not China, driving imbalances - Reuters -
