We recognize this as a necessary short term trade-off for realizing medium-term gains. We, therefore, urge all the major currency areas to coordinate their policies and to carefully monitor currency market behavior to minimize potential adverse repercussions on financial markets and on sustainability of global economic recovery. The recent depreciation of dollar has, to some extent, minimized the possibility of such disruptive adjustment.
Further, continuing robust productivity trends support the strong prospect for recovery in the United States. In this regard, there is considerable merit in the U.S. evolving a medium-term fiscal framework to bring its fiscal position on to a sustainable path. The outlook for the Euro area seems rather flat. As in the US, there is a comparable element of trade-off.