BBC News (Link) - Barak Ravid (April 15, 2011)
Finance ministers and central bankers from the G20 have agreed a set of “indicative guidelines” to measure potential risks to the global economy posed by national economic policies.
All members of the G20 will be monitored under the new system.
In addition, members who account for more than 5% of total G20 economic output will be subject to a deeper, second-stage analysis of imbalances.
They include the US, China, Japan, Germany and France.
This is to “reflect the greater potential for spillover effects from larger economies,” the group said.
The G20 did not formally name the countries this would apply to but French Finance Minister Christine Lagarde said that France would be one of seven in total to face higher scrutiny.
The group was meeting in Washington, ahead of the spring meetings of the World Bank and the International Monetary Fund (IMF).
The G20 accounts for 85% of global output and is now the main forum for trying to reform the world’s financial system.