G-20 Pledges to Keep Stimulus Flowing

By Newser Editors and Wire Services
Posted Sep 5, 2009 12:50 PM CDT
Mervyn King, governor of the Bank of England, right, arrives with U.S. Federal Reserve Chairman Ben Bernanke, for the G20 finance ministers dinner in London, Friday, Sept. 4, 2009.    (Andrew Winning)
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(Newser) – Top finance officials from rich and developing countries today pledged to maintain stimulus measures to boost the global economy, warning that the fledging recovery that provided the backdrop to their meeting is by no means assured. Group of 20 finance ministers also promised a crackdown on bankers' pay—but stopped short of a European push for a cap on bonuses after US and British objections.

A joint communique said monetary policy will stay "expansionary" for as long as needed to reduce the chances of a double-dip recession. The communique said work will continue on the possibility of introducing a cap mechanism on bankers' bonuses, but the group did not commit to the measure. Instead, the G-20 proposed clawback mechanisms to ensure that bonuses are linked to the long-term success of deals.