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Summers refrains from remarks on European currency |
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September 11, 2000
BANDAR SERI BEGAWAN, Brunei (AP) - U.S. Treasury Secretary Lawrence Summers maintained his aloof stance on the euro's new lows during his appearance at this weekend's gathering of finance ministers from 21 Pacific Rim countries. Addressing reporters at the conclusion of the two-day meeting of the Asia-Pacific Economic Cooperation forum, Summers said only that the United States is closely watching developments in financial markets, as usual. The United States and other countries are "always in touch and talking with each other," Summers said. There had been some speculation that Summers might be hit by criticism from other finance ministers for persisting with the U.S. strong dollar policy, which has been a foundation stone in President Bill Clinton's economic strategy. Summers, like predecessor Robert Rubin, argues that a strong dollar benefits the U.S. economy by keeping inflation at bay and attracting productive investment. But he was unmoved by reporters' questions based on the premise that this policy was only adding salt to the euro's wounds. "We've stated our currency policy many times and I don't have anything to add," Summers said. Other APEC members have expressed concern that the strength of the U.S. dollar is harming their currencies, but there was little to suggest they confronted Summers directly on such a touchy issue. Japanese Finance Minister Kiichi Miyazawa said over the weekend that mixed messages coming from Europe concerning the euro make it difficult for Japan to respond to the euro's persistent weakness. The euro has lost a quarter of its value since being introduced Jan. 1, 1999. The decline has been blamed on the complexity for the European Central Bank in dealing with 11-member governments, strong European economic growth nonetheless lagging the supercharged United States, and structural economic weaknesses in the European Union. Miyazawa said that while many European officials have called for a stronger euro, others continue to say that a weak euro helps exporters. Such comments by German Chancellor Gerhard Schroeder last week pushed the currency to new lows. European Central Bank Governor Wim Duisenberg has told him on several occasions that price stability is the ECB's goal rather than a strong euro, Miyazawa said. "I'm saying to (our) fiscal and monetary authorities that we don't know who we're dealing with," Miyazawa said. "So there is no way we can come up with an appropriate response." |
