Risk to global economy rising: IMF chief

2011-08-27 23:00

New York - Risks to the global economy are rising and the tools for supporting it are more limited than they have been in the past, IMF chief Christine Lagarde warned on Saturday.

But Lagarde - in a speech to a meeting of central bankers in Jackson Hole, Wyoming - said that despite the narrowing options, there is still a path to recovery, and "resolute action will help to dispel doubts".

"Risks to the global economy are rising, but there remains a path to recovery. The policy options are narrower than before but there is a way through," the managing director of the International Monetary Fund said.

"I am confident that with the right actions, strong, sustainable, and balanced growth can and will be restored," she said.

She spoke a day after US Federal Reserve chairperson Ben Bernanke said the bank could do little at this time to enhance economic growth and called on US political leaders to do more to boost jobs and the housing market.

Lagarde also called for "a new approach based on bold political action, with a comprehensive plan across all policy levers, implemented in a co-ordinated global way."

"Clearly, the scope for policy action is much narrower today than in 2008. There are no easy solutions, but that does not mean there are no solutions.

"Put simply, while fiscal consolidation remains an imperative, macroeconomic policies must support growth," she said.

  • k1dbl4ck - 2011-08-27 23:39

    next stop. a global currency. which, apart from my previous rambling, is perhaps not such a bad idea.

      s s - 2011-08-28 01:34

      The US dollar is all you're going to get, so get used to it!

      Smk - 2011-08-28 07:44

      Actually s s. America is going to get a new curency called the Amero. The American $ will be dumped and then the IMF is going to issue 'Drawing rights' which will replace the $ as international standard and it will be weighed against a number of curencies instead of just he $ being there. As it is the only thing America exports is war, aside from that and Windows they have little else that actaully generates much exports as everything comes from China.

  • beicime - 2011-08-29 10:10

    The "big" gust always well dressed, travelling in luxury, making knowledgeabe statements on TV, etc. etc. etc. screwed up the world nd didn't lose their jibs or a cents of their savings and income.

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