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Central banks can't solve world's economic problems by themselves

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Central banks cannot solve the world's economic problems by themselves, the chairman of JPMorgan Chase International and a former governor of the Bank of Israel said Thursday.

Speaking to CNBC in in Shanghai ahead of a G-20 meeting of the finance ministers on Friday, Jacob Frenkel said the solution to the problem of slowing growth today laid in structural reforms.

"I don't believe the problem today is a problem of lack of liquidity or a problem that can be solved by central banks," Frenkel said.

"In fact, central banks have already been overwhelmed and overstretched."

Among the structural policies that governments need to implement would be to improve the flexibility of the economic system, as well as to boost the mobility and the functioning of the labor markets.

Frenkel's comments come as the markets are waiting in bated breath for any coordinated action by the G-20 economies to address the uncertain global macroeconomic outlook and market turbulence.

Such a move is unlikely to happen as the different countries all face difference challenges, he said.

"Some have started the resumption of growth, some are still behind and it is perfectly warranted that that each country or each bloc will adjust its policies to the phase of the cycle (in which) they are in."

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