The third way in which EMEs can contribute to global prosperity, which in fact follows my earlier point about the G-20 process, is to make the implementation of the Global Framework and the related Mutual Assessment Process (MAP) a success. In their Toronto Summit in July 2010, the G-20 leaders agreed on a “Framework for Strong, Sustainable and Balanced Growth”.
How the burden of adjustment is shared between price levels and exchange rates will depend on country circumstances – in particular the economy’s structural constraints and market rigidities. 53. To support sustainable growth during a period when the economy is globalizing, our inflation rate needs to converge with the global inflation rate.