SYDNEY — Janet Yellen, in her first global forum as Federal Reserve chair, won praise for helping smooth emerging market concerns as the Group of 20 nations pledged to be mindful of international repercussions of monetary policy.
In the lead up to the concluding communique released over the weekend, India and South Africa were among nations calling for the Fed to consider what happens to emerging nations when it withdraws stimulus for the US economy. Britain and Australia backed the Fed’s right to set policy to its own needs and said some were using the impact of the tapering off of stimulus as an excuse for their domestic failings.
Australia’s treasurer, Joe Hockey, said Yellen was ‘‘hugely impressive’’ in dealing with the issue of fallout. ‘‘There was proper recognition that the movement of monetary policy in major developed countries either way, whether it be tightening or easing, is going to have an impact on emerging economies,’’ he said in a speech.
Yellen eschewed public statements. As Hockey and his French and Spanish counterparts noted her impact in deliberations, Reserve Bank of India Governor Raghuram Rajan, who warned before the meetings of a breakdown in global policy coordination, noted ‘‘widespread agreement’’ on the need to calibrate policy.
The timing of reductions in stimulus will depend on the outlook for prices and growth, the G-20 communique said. The group aims to lift collective gross domestic product by more than 2 percent above the trajectory implied by current policies over the next five years.
The final statement said central banks would be ‘‘mindful of impacts’’ of monetary policy, a clause not in a draft Bloomberg News saw Feb. 21.
A line saying G-20 nations ‘‘recognize that monetary policy needs to remain accommodative in many advanced economies’’ was also added.
‘‘My impression from Janet Yellen is that it’s a more balanced approach, and I’m sure that it will be well received by emerging markets,’ said Mike Callaghan, head of the G-20 Studies Centre. European Central Bank president Mario Draghi said it’s also up to emerging markets to fix their own structural weaknesses.