G20 agrees opportunities to the risk measure

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15 April 2011 last updated at 22: 08 GMT French Finance Minister Christine Lagarde (R) chaired the meeting of Finance Ministers and central bankers from the G20 Summit have a number of "indicative guidelines" agreed to measure the potential risks for the global economy by the national economic policies.

All members of the G20 Summit will be monitored under the new system.

In addition to members that a deeper, second stage analysis of imbalances are subject to for more than 5% of the overall economic performance of G20 account.

These include the United States, China, Japan, Germany and France.

This is to "reflect the greater potential for spill over effects of larger economies", the group said.

The G20 not formally the countries, where this up would apply, but French Finance Minister Christine Lagarde said that France one of the seven total higher control would face.

The Group was meeting in Washington in front of the spring meetings of the World Bank and the International Monetary Fund (IMF).

The g-20 accounts for 85% of worldwide and is now the main forum for the trial of the world financial system reform.

Imbalances

Many economists believe that global imbalances contributed to the recent financial crisis.

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the guidelines are a bit like a network, which actually holds the countries that violate or do not respect the guidelines "

end quote French Finance Minister Christine Lagarde emerging market countries reinvested their surpluses in Western markets, that banks", excessive risks, so the argument goes.

Finance Ministers agree that they must find a solution for this type of imbalance.

But countries on how quickly they need to act, do not agree to.

China acknowledges that it must open its economy and allow its currency, the Yuan, to get more, but it you want at his own pace.

The United States, on the other hand, that would like to see happen much faster.

Monitoring methods

After its last meeting in February, the group reached an agreement on the indicators to recognize the economic imbalances.

The Washington Business measurement applies to these indicators, public debts and deficits, and private debt and savings rates.

In its latest Communique said the G20, their monitoring four approaches would use:

Estimate what should look like a country imbalances, such as the use of economic models specifically for the Countrylooking in a land imbalances in terms of their national historical Trendscomparing a country imbalances with groups of similar Countriescomparing of a country imbalances with the full G20.

The last three approaches used statistics from 1990 to 2004, "such as this time, which is the large building in external imbalances, advance", the Communique said.

Watch: European policy makers becoming complacent over economic recovery

"Incoming identified these countries by at least two of the four approaches such as with persistently large imbalances to determine in a second step, the nature and root is evaluated to identify causes for their disparities and barriers to adaptation," the group said.

The second step of the review would be carried out independently by the IMF.

"The guidelines a bit like a network run actually contains which of the countries which violate or do not respect the guidelines," said Mrs Lagarde, which currently holds the Presidency of the G20 Summit chaired of the meeting such as France.

"And the network is a little close for the countries that are considered systemically important, as they represent more than 5% of GDP [gross domestic product] of the G20."

However, the Group has no mention of any "Name and shame" list, which would identify the members in the most risky positions.

'No complacency'

Although the world economy on the road to recovery seems to be the meeting at a time was when many threats to growth remain.

The challenges are unrest in the Middle East, high oil prices, sustained inflation in China and debt problems in Europe.

The Director of the IMF, Dominique Strauss-Kahn, told the BBC that some policymakers thought "the crisis behind us" and it was "the wrong attitude".

In Europe, he said, was no room for complacency about high debt.

"Much more to be done by the Europeans to resolve the debt problem []," he said.