The world's rich nations pushed back against emerging market complaints about the spillover effects of their monetary polices, saying on Friday they had to get their own houses in order and get with the agenda of lifting global growth. As finance ministers and central bank chiefs from the Group of 20 developed and emerging gather ahead of a weekend meeting in Sydney, many are already talking at cross purposes.
Emerging nations want the US Federal Reserve to calibrate its winding down of stimulus so as to mitigate the impact on their economies. Developed members reply that the troubles in the emerging world are mostly homegrown and domestic interest rates have to be set with domestic recoveries in mind. "Emerging markets need to take steps of their own to get their fiscal house in order and put structural reforms in place," US Treasury Secretary Jack Lew said at a financial conference in Sydney ahead of the ministerial meetings. That was a sentiment very much echoed by the finance ministers of Japan, Britain and Germany.
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