Christine LAGARDE
Minister of the Economy, Finance and Industry
France
Dear Mr Noyer, after our February marathon, I am delighted to get together in this magnificent establishment, which many now consider to be an annex of the Banque de France. I know how attached you are to the Golden Gallery, where yesterday evening’s meeting was held. But I also understand that you might wish to free yourself from the weight of history in order to look with confidence to the future of the global economy.
Indeed, we live in a disorderly world, in which the share of emerging markets in the composition of global growth has increased steadily from 30% in 1980 to 45% 30 years on. This world is also increasingly interconnected —exports account for a growing share of wealth creation in our national economies— and increasingly volatile.
...
"The G20 reached agreement on three objectives:
- ensure the stability of the fi nancial system;
- promote the orderly transition from a world where a small number of economies, with their currencies, represent the bulk of wealth and trade to a multipolar world where emerging countries and their currencies represent a growing if not predominant share;
- avoid disruptive fluctuations in capital flows, disorderly movements in exchange rates and persistent misalignments of exchange rates."
...
"...The next step is for us to reach an agreement, at the forthcoming G20 meeting in Washington, on a list of our imbalance indicators and the way in which they could contribute to economic policy recommendations aimed at rebalancing global growth. We must also examine the initial proposals for reforming the IMS, drawing on preliminary studies by the IMF as well as the World Bank and development banks.
In other words, the Paris G20 meeting laid the foundations for discussions in 2011, which will come to fruition at the summit of Heads of State or Government in Cannes in November. A few days before, together with other Finance Ministers and central bank Governors, we will finalise the proposals for reforming the IMS that we will submit at the summit.
Before that, on 31 March, in Nanjing, a high-level seminar dedicated to the reform of the IMS will provide a forum to freely discuss our views and put a stop to the “currency war” rhetoric in favour of a frank but respectful discussion. As Churchill said, at a White House dinner on 26 June 1954, “To jaw-jaw is always better than to war-war”..."
Source: http://www.banque-france.fr/gb/publications/telechar/seminaires/2011/Session4-Lagarde.pdf
Part of bigger workshop:
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