IMF's Lagarde, other G20 finance VIPs urge action on reforms

The clouded global outlook has upped pressure for reassurances and action from the finance ministers and central bankers gathered in Shanghai for a meeting of the Group of 20 major rich and emerging economies.

Referring to monetary and fiscal policy and structural reforms, Lagarde said, "There has to be action on all fronts."

Others at the meeting include U.S. Treasury Secretary Jacob Lew and Federal Reserve Chairwoman Janet Yellen; China's finance minister, Lou Jiwei, and central bank governor, Zhou Xiaochuan; Mario Draghi of the European Central Bank and their counterparts from Europe, South Korea, India and South Africa.

Germany's finance minister, Wolfgang Schauble, said fiscal stimulus has "reached its limit" and his government will not agree to more coordinated spending in the event of further deterioration in the global economy.

[...] the communist government is scrambling to defend its reputation for economic competence following stock market and currency turmoil.

Earlier Friday, China's central bank chief promised to avoid weakening the yuan as he tried to reassure nervous financial markets about his government's handling of its economy and currency.