G-20 Summit: These Economic Issues Are Hot-Button Topics
Though the brewing conflict in Syria may be dominating headlines, there are many economic issues that will be highlighted at the Group of 20 summit Thursday and Friday in St. Petersburg, Russia.
One topic on everyone’s mind is taking steps to mitigate the effects of the looming end of the U.S.’s quantitative easing policy. After Chairman of the Federal Reserve Ben Bernanke announced that rollbacks to quantitative easing were likely to be discussed at the Fed’s meeting later this month, many investors have pulled back on or totally exited their projects in many emerging countries, fearing that their cheap supply of dollars to invest may finally be coming to an end. This has already led to dramatic drops in the value of several currencies in emerging markets such as Brazil and Indonesia.
So far, no one has been hit harder than India, where the rupee has plummeted in the lead-up to the G-20 summit. India said that it would take measures to protect its currency, though little formal progress has been made in the international scene to date.