U.S., Allies Vow to Face Challenges Together

The U.S. and its major allies said the world economy still faces a number of “serious challenges” stemming from a 20-month-old global currency crisis. They pledged closer cooperation to boost growth and help lift countries in crisis out of recession. The commitments appear in an eight-page joint statement issued in Washington at the end of discussions among finance ministers and central bank presidents from countries representing the world’s seven leading economies: the United States, Japan, Germany, France, Britain, Italy and Canada. The statement expresses concern about the need to achieve “more balanced growth among our countries to reduce external imbalances and to continue to support recovery in emerging markets.” The group did not spell out how this increased growth would be achieved. But its statement notes that the outlook remains favorable for continued price stability--a signal that interest rate cuts by individual countries could be used to boost domestic demand.