IMF Asked to Aid G-8 With Exit Strategies For Crisis Policies |
|
June 13,2009
Amid signs that the global economic crisis is stabilizing, the Group of Eight (G-8) advanced economies has asked the International Monetary Fund (IMF) to do the necessary analytical work to help governments prepare “exit strategies” to unwind the huge stimulus packages that have been deployed to combat the crisis.
Amid signs that the global economic crisis is stabilizing, the Group of Eight (G-8) advanced economies has asked the International Monetary Fund (IMF) to do the necessary analytical work to help governments prepare “exit strategies” to unwind the huge stimulus packages that have been deployed to combat the crisis.
G-8 finance ministers and central bank governors, meeting June 12-13 in the southern Italian town of Lecce, warned, however, that despite improved business and consumer confidence in the advanced economies, “the situation remains uncertain and significant risks remain to economic and financial stability.”
They also noted that unemployment may continue to rise even after production picks up.
IMF Managing Director Dominique Strauss-Kahn said it was a credit to governments around the world that their policy actions were starting to have effect, but the recovery was weak and a lot remained to be done, particularly in the financial sector. He told reporters that the situation in some emerging market countries was still worrying.
While it was important to begin thinking about exit strategies for the postcrisis period, such as cutting back budget deficits, “it is even more important to first exit from the crisis.” So it was essential to continue work to provide stimulus to the global economy and to clean up bank balance sheets.
Related Links
