Title:
G-20 Nations Wonder: How Soon Is Too Soon to Cut
Spending?
Description: This is
a VOA Special English Economics Report.
See text below
Text:
In June, leaders and top finance officials from the
world's twenty biggest economies gathered in
Toronto, Canada. One of the big issues they
discussed is how and when to reduce deficits and
economic growth measures as conditions
improve.Chancellor Angela Merkel defended Germany's
decision to cut spending by one hundred billion
dollars over four years. But some experts say the
world economy is still too weak for Europe's biggest
country to reduce spending.Earlier this year,
Germany was slow to react to the Greek debt crisis.
European countries later had to agree to a nearly
one trillion dollar rescue for the euro area.Other
countries including Britain, France and Japan have
also announced cuts. But American Treasury Secretary
Tim Geithner says: "Without growth now, deficits
will rise further and undermine future
growth."Economists also point out that spending cuts
alone do not solve the problems of countries with
structural economic problems.G-20 nations are also
struggling with financial reform issues. These
include new rules for risky financial products and
closer supervision of banks.In June, Britain's
finance minister announced a new tax on big banks.
Germany and France are considering similar measures
to pay for future financial problems. President
Obama proposed the idea for the United States in
January. But how many countries will join Britain is
not clear. Nineteen countries and the European Union
form the Group of 20, including developing economies
like Brazil, China, India and Russia. Economist
Sebastian Mallaby at the Council on Foreign
Relations says G-20 nations should work together on
financial reforms.G-20 nations also face the issue
of trade imbalances, like the one between the United
States and China. China said it would not discuss
the dispute over its currency at the Toronto summit.
But China announced it will slowly let the value of
the yuan rise. It later reached its highest exchange
rate in two years. China's export prices may rise,
but an American diplomat said the action "takes an
irritant off the table in the U.S.-China
relationship."
And that's the VOA Special English Economics report.
For more news about economics, visit our website at
voaspecialenglish.com. You can also comment on our
programs and find transcripts, MP3s and podcasts.
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personally reviewed this video and found it appropriate for
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is a Voice of America video which covers an interesting
topic in Special English. I would appreciate some feedback from both
students and teachers about this video. You can comment in
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