U.S. Plans to Keep Stimulus Package Intact

One of the discussions going on at the G-20 summit happening in Philadelphia is all about the stimulus packages and exit strategies. However, the policymakers in the G-20 have agreed to keep stimulus measures in place until all of the countries involved are on their way to sustained recoveries and until exit strategies from the economic stimulus can be coordinated. (It appears as though the G-20 is about to replace the G8 as the main council for global economic coordination.)

This is an interesting point, since there are concerns that economic stimulus measures, if not lifted at the right time, could result in inflation. Federal Reserve chair Ben Bernanke says he has a plan to combat inflation and exit economic stimulus, but it will be interesting to see whether U.S. agreements with the G-20 will change the situation a bit.

At any rate, the U.S. Treasury is reporting that the G-20 have come to an agreement regarding the limit of executive compensation, and that a basic outline of a plan regarding executive bonuses should be completed by the end of the year. Timothy Geithner also vowed that the U.S. will continue to fight to keep the U.S. dollar in its position in the international market. The Treasury will also try to keep reserves of emergency funding so that it is available if needed later.