G20 frames plan to address imbalances

The major economies of the world have reached an agreement on measuring the types of dangerous imbalances that contributed to the worst global financial downturn in seven decades.

The agreement was reached after an all-night negotiating session. It will see countries monitored and prodded into taking corrective measures in the event of imbalances in areas like foreign trade or government trade rose to excessive levels.

The deal comes as a significant achievement that will maintain the momentum of the global economic recovery and help prevent another financial crisis.

Finance officials from the group's member economies also agreed to look closely at so called currency misalignments.

In a communiqué finance ministers and central bankers said that seven of the largest economies of the world would have their policies reviewed by the group in the coming months with the IMF doing the first review of the nations involved -the US, Japan, Germany, China, France, the UK and India.

According to Christine Lagard, the finance minster of France which leads the G-20 this year, the group had made huge progress as regards the framework for growth.