Author Ben Rooney

The two-day Group of 20 summit kicks off Thursday...

the 3rd of November

... in Cannes, withEurope's sovereign debt and banking crisis expected to dominate behind-the-scenes talks.

 

In emerging economies, where growth remains comparatively robust, policy makers have been tightening the flow of credit to cool inflation and prevent a hard landing.

The G20 is also expected to make a commitment to reform the "international monetary system."

In general, this refers to capital flows and currency exchange rate policies. While China has loosened its peg on the yuan somewhat, the United States wants Beijing to have a real "market-driven" exchange rate.

The G20 leaders will outline the progress they have made to reform the global financial system, including sweeping changes from the Dodd-Frank Act. But leaders will probably say that more needs to be done.

The Europeans, who just agreed on new capital requirements for banks, have also been pushing for a financial transaction tax that would apply to things like stock trades and transactions in the currency market.