NewWhy are the world’s markets going crazy? It’s China’s economy, US monetary policy and commodity prices, says France’s finance minister
It’s not yet a “crisis”, though, as the global economy’s volatility is caused by a combination of factors, according to Michel Sapin
China’s economy, the United States’ monetary policy, and commodity prices are the three main causes of instability in the global economy, according to France’s finance minister.
Michel Sapin said, however, that the volatility did not amount to a crisis because it was caused by a combination of factors.
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“I believe that there are very different causes. There are causes linked to the Asian economy, for example, especially the Chinese economy. There are causes linked to monetary policies, especially American monetary policy. There are causes linked to commodity prices,” Sapin said in Hong Kong yesterday, as he made his way to the G20 meetings of finance ministers and central bank governors in Shanghai.
“Because of these several causes, we cannot talk about the existence of a crisis. [But] we can talk about difficulties and each one of these difficulties has to be tackled.”
Sapin said he did not expect the G20 meeting to achieve any major breakthrough.
Rather, it would be a “G20 of continuity”, which would work on and implement decisions made at the previous meeting in Antalya, Turkey, last year.
“This is not a G20 that will create new things. It’s a G20 where we will continue to implement the decisions taken before,” he said.