In a statement released after five hours of meetings in Washington, leaders of the Group of 20 nations called for a ``broader policy response'' to the possibility of a deep recession, but said nations should act ``as deemed appropriate to domestic conditions.''
``Economic momentum is slowing substantially in major economies and the global outlook has weakened,'' it said.
The group also warned against erecting new trade barriers, called for more resources for the International Monetary Fund, and set a March deadline for recommendations on additional actions to improve accounting standards, strengthen derivatives markets, and tighten oversight of hedge funds and ratings companies.
``Policy makers, regulators and supervisors, in some advance countries, did not adequately appreciate and address the risks building up in financial markets, keep pace with financial innovation, or take into account the systemic ramifications of domestic regulatory actions,'' the leaders said in their statement. ``We must lay the foundation for reform to help ensure that a global crisis, such as this one, does not happen again.''
The group agreed to meet again by the end of April.