G8 leaders-Global Economy not stable enough to pull back Stimulus
Leader's of the world's eighth largest economies met today. In a joint statement they agreed that the global economy is not stable enough to pull back on massive fiscal stimulus soon.
In a statement obtained by AP they did not commit to preparing exit strategies form the "unprecedented and concerted action" with the help of the International Monetary Fund.
They said that they would take whatever action is necessary, collectively and individually, to contain inflation and to stimulate the economy and to ensure banks have enough money to lend.
Although no commitments were made, Afghanistan, North Korea, Pakistan and Iran are also on the agenda.
On the first day of their summit in L'Aquila, Italy on Wednesday, Group of Eight leaders agreed the global economy is not stable enough to pull back massive fiscal stimulus plans any time soon, according to a draft statement.
However, the leaders from Britain, Canada, France, Germany, Italy, Japan, Russia and the United States did commit to preparing exit strategies from the "unprecedented and concerted action" with the help of the International Monetary Fund, said the statement obtained by The Associated Press.
"We will take, individually and collectively, the necessary steps to return the global economy to a strong, stable and sustainable growth path," the draft communique said.
The measures include continuing their stimulus packages while keeping inflation under control, and ensuring banks have enough cash to keep lending.
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