Deep divisions over the sources of global economic fragility intensified on Thursday before the Group of 20 meeting of finance ministers and central bank governors, undermining talk of greater international co-operation.
The US strengthened its rhetoric on inflexible exchange rates as the main causes of economic imbalances, while China’s president insisted that the most pressing concern was inadequate development of emerging economies.
Despite the differences, the G20 meeting on Friday in Washington was expected to avoid a breakdown and instead agree on some technical methods to measure imbalances in the global economy.
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