The world's financial leaders meet in China over the weekend and are likely to declare readiness to take action if economic conditions worsen further. But as David Pollard reports, there are big questions over what concrete form any action would take.
When China speaks, the world listens. But it's also keen to show it's not deaf to the concerns of others.... From briefings before the G20 come reassurances on growth - "still in a reasonable range" it says. And on its currency - there's "no basis for continued depreciation" the official line there. At least, for now. Peter Dixon is Commerzbank's global economist. (SOUNDBITE) (English) GLOBAL FINANCIAL ECONOMIST, COMMERZBANK, PETER DIXON, SAYING: "Should China be devaluing? ... From a Chinese perspective, it's obviously the rational thing to do. Unfortunately, it has major consequences for the rest of the world, and currency policy is a zero sum game. It comes down to who has the biggest heft, and China has the biggest heft." Currency wars - and growth - the big themes then for Shanghai - with central bankers in particular under scrutiny. Just this week, Bank of Japan board member Takahide Kiuchi and Bundesbank chief Jens Weidmann have issued cautions. One to say that policy options are running out - the other to warn of the negative impact of ultra-low rates on the banking sector. Jeremy Cook of World First. SOUNDBITE (English) CHIEF ECONOMIST, WORLD FIRST, JEREMY COOK, SAYING: "The noises we've been hearing from central bankers for the past year or so around how monetary policy has been overburdened with the ability to lift the world economy and fiscal policy needs to come the fore - that's obviously a decision that needs to be taken back to their respective governments and parliaments, so in the short term I expect very, very little out of the G20 at the weekend." The euro zone, meanwhile, has just revised down its headline inflation rate to just 0.3 per cent. Amid more telltales of a global slowdown, the IMF is calling for coordinated G20 action. Even as many wonder whether this meeting will produce it.