IMF Chief: Late Stimulus Exit Better Than Early |
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November 23, 2009
International Monetary Fund Managing Director Dominique Strauss-Kahn said Monday that it is still too early for a general exit from stimulus policies and governments should err on the side of caution, with a late exit being potentially less damaging than an early one.
International Monetary Fund Managing Director Dominique Strauss-Kahn said Monday that it is still too early for a general exit from stimulus policies and governments should err on the side of caution, with a late exit being potentially less damaging than an early one.
In a speech in London, Strauss-Kahn said while conditions in the global economy are improving, they remain "highly vulnerable," threatened by undercapitalized banking systems, weak household finances, high unemployment and large public deficits.
He added that designing and communicating plans for fiscal consolidation should be the top priority, especially for advanced economies, where there is "little sign" of inflationary pressures, and monetary policy can afford to stay accommodative for "some time."
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