No need for G20 coordinated stimulus, says US official in Athens


Group of 20 finance officials do not need to take the same type of massive coordinated fiscal stimulus efforts that they did to combat recession in 2008-2009, despite risks posed by Britain’s exit from the European Union, a senior US Treasury official said on Thursday in Athens.

“I don’t think this is a moment which calls for the kind of coordinated action that say the Great Recession did in 2008 and 2009,” the official told reporters. “It really is a moment of cautionary – we each need to do what we can to ensure that where growth is soft it gets stronger, and prospects for the medium and long term are improved.”

The official said, however, that the previous G20 tug of war between member countries pressing for more austerity and those seeking to promote more growth have clearly been tipped in favor of growth.