WASHINGTON - The world's major economic powers are pledging to launch a bold effort to confront both a chronic slowdown in growth and a European debt crisis that are threatening to push the global economy into another recession.
But it is unclear, however, whether their words will be backed by strong actions.
The statement by the Group of 20 major economies pledges that the countries, which represent 85 per cent of the global economy, will do what's necessary to restore financial stability and calm financial markets.
Stocks closed sharply lower Thursday after investors sold stocks with abandon, convinced that the U.S. and the world are headed for a new recession. That sell-off continued Friday in Asia.
The United States is represented in the talks by Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke