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Geithner and Summers warn on austerity effects


Geithner and Summers warn on austerity effects


Top US economic officials have said the Group of 20 nations should beware of doing to much too soon to curb their deficits.

Treasury Secretary Timothy Geithner and top White House economic adviser Lawrence Summers in a Wall Street Journal article warned that could push the global economy back into recession.

The issue is expected to be a key point of difference at the G20 summit at the end of this week.

There have already been signs of differing approaches among G20 members about how to better insulate the global economy against a repeat of the devastating 2007-2008 financial crisis that caused a severe recession.

Germany, France and Britain said on Tuesday they were introducing a bank levy, without waiting for the G20 meeting.

Geithner and Summers said it was vital for the G20 to work together to get the global economy back on track.

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