Argentina says rich nations should focus on jobs

By Hilary Burke and Magdalena Morales

BUENOS AIRES, Oct 18 (BestGrowthStock) – Argentina’s economy
minister called on developed nations on Monday to create more
jobs rather than take measures that are weakening their
currencies and hurting emerging powers.

Speaking ahead of this week’s meeting of finance leaders
from the G20 major developed and emerging nations, Amado Boudou
said a “true currency war” was being waged, referring to
policies rich nations have pursued that weaken their currencies
and spur exports.

This has sent speculative cash flooding into
higher-yielding developing markets, where currencies are
firming at an uncomfortably quick pace.

“Developed countries should have expansive measures
oriented toward their domestic markets that allow them to
create jobs. This hasn’t worked very well up to now but they
have to insist on this,” Boudou told Reuters.

Asked if he was suggesting that the world’s top economies
increase spending, he said: “We don’t like people giving us
advice, so we don’t give advice either. But clearly the
measures they’ve taken up to now have been insufficient.”

The U.S. government came up with a roughly $800 billion
stimulus package to help steer the U.S. economy out of
recession in 2009.

It has since shied away from further big spending plans
amid concerns among voters about the budget deficit. The U.S.
Federal Reserve is now mulling new monetary stimulus measures
which have weakened the dollar and fueled demand for emerging
economy assets and currencies.

Currency tensions are sure to figure high on the agenda of
the G20 gathering in South Korea, but Boudou said officials
should focus on moving forward with previous commitments such
as overhauling international financial regulations, diluting
the power of credit rating agencies and eliminating tax
havens.

“These three issues put together are related to
international (capital) flows. So we think we should continue
with this agenda,” Boudou said.
(Editing by James Dalgleish)

Argentina says rich nations should focus on jobs