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YELLEN MINDFUL ON TAPERING

Written By Savoeun on Sunday 23 February 2014 | 20:16

There was a nod to concerns by emerging nations that the Federal Reserve consider the impact of its policy tapering, which has led to bouts of capital flight from some of the more vulnerable markets.
"All our central banks maintain their commitment that monetary policy settings will continue to be carefully calibrated and clearly communicated, in the context of ongoing exchange of information and being mindful of impacts on the global economy," the communiqué read.
There was never much expectation the Fed would consider actually slowing the pace of tapering, but its emerging peers had at least hoped for more cooperation on policy.
Hockey said there had been honest discussions among members on the impact of tapering and that newly installed Fed Chair Janet Yellen was "hugely impressive" when dealing with them.
The G20 also stated that it "deeply regrets" that progress on giving emerging nations more say in the International Monetary Fund had stalled.
Major emerging powers including India, China, Brazil and Russia, have long lobbied for increased voting power in the IMF to reflect their growing share of the world economy, but the changes agreed in 2010 have been blocked by the U.S. Congress.
The G20 urged the United States to ratify the reforms before the next meeting of policy makers in April.
The group is also progressing with plans to "make sure multinational companies pay their fair share," said U.S. Treasury Secretary Jack Lew.

Big budget deficits and revelations that companies such as Apple and Google use structures that lawmakers have labeled "contrived" to avoid billions of dollars in taxes, have led to growing calls to close corporate tax loopholes. The companies say they follow the existing tax rules.

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