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Structural Reforms, Not Loose Monetary Policy, Spurs Global Growth – Davos Conference
By Kitco NewsWednesday January 21, 2014 11:25 AM
(Kitco News) - Although the banking sector is stronger than just a few years ago, some Davos panelists said it is now time for politicians to implement structural reforms.
During a panel discussion at the World Economic Forum (WEF), business leaders weighed in the need for politicians to act on structural reforms, and not simply talk about acting. 
In a press release covering the salient points of the discussion, Min Zhu, deputy managing director of the International Monetary Fund, said “right now structural reforms are the only game in town. We need politicians to act.”
The 45th WEF Annual Meeting kicked off in Davos-Klosters, Switzerland, on Wednesday and will run from January 21 to 24.
According to the press release, Axel Weber, chairman of the board of directors at UBS, who was also part of the session panel with Zhu, said, “policy-makers shouldn’t kid themselves…They need to deliver policy reforms, not just loose monetary policy.”
His comments come as world markets await Thursday’s European Central Bank monetary policy meeting to see if the central bank will announce a quantitative easing plan, or loose monetary policy, in the region.
Some panelists, the press release said, were more focused on other factors that could hinder economic growth, such as infrastructure issues and lack of consumption.
John Rice, vice-chairman of General Electric, said, “you don’t have sustainable, inclusive growth unless you have jobs, and you don’t create jobs unless you have good basic infrastructure.”
Zhang Xin, chief executive officer of SOHO China, said that China, specifically, is suffering of too much investment and not enough consumption.
“How do we grow consumption? We need tax reform,” Xin said during the panel.
According to the press release, there are more than 2,500 attendees present at the conference this year.
By Sarah Benali of Kitco News sbenali@kitco.com
Follow me on Twitter @SdBenali
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