Foreign currency exchange inequalities 'partly to blame for global recession'

Foreign currency exchange inequalities have been flagged up by the French president.

Speaking at the World Economic Forum in Davos, Nicolas Sarkozy blamed the world's "currency regime" for its role in the recent global economic crisis.

Exchange rate instability, the under-valuation of certain currencies and national debt problems will all play a major role in protecting against future economic problems, the president said.

He added: "Countries with trade surpluses must consume more and improve the living standards and social protection of their citizens…countries with deficits must make an effort to consume a little less and repay their debts."

Other speakers at the event included Doris Leuthard, president of the Swiss Confederation and World Economic Forum founder, Klaus Schwab.

Both Mr Schwab and Ms Leuthard called for global cooperation in order to avoid future global recessions.

The World Economic Forum aims to engage world leaders in discussing and improving international economic issues.

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Posted by Chris Barber