G20-IMF 3LST

On US proposal that countries should limit their
Current Account Deficit (CAD) to four per cent of Gross
Domestic Product (GDP), Ahluwalia said he did not not think
there was any unanimity on the subject.
"I don't there is any formal proposal. One of the
Mutual Assessment Process (MAP) currently on in the G-20 was
how to balance sustainable flows. He said four per cent may be
appropriate.
"If you are a country which can absorb investment in
long term infrastructure you can run a four per cent deficit.
If you are a big country it will have a systemic impact. If
you are a small country it will not have a systemic impact.
Our view is that there is sustainable surplus depends on
country to country." PTI