Global unease over the U.S. Federal Reserve's quantitative-easing plan, which will inject $600 billion into the economy, created a tense diplomatic environment ahead of the Group of 20 summit in Seoul. Big exporters such as China and Germany voiced frustrations with QE2 (as the Fed's plan is known), claiming the flood of money will devalue the dollar and imperil the competitiveness of other economies. President Obama challenged such claims, saying that stimulating spending in the U.S. was in everyone's interest. Other macroeconomic sore points, including banking and exchange rates, are also expected to dominate the G-20 discussion. While China wants to spur domestic consumer spending, the odds of Beijing's agreeing to allow its undervalued currency to rise are very low.
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