Countries will need to adopt strong national policies and work together even more closely to manage new transitions under way in the global economy, IMF Managing Director Christine Lagarde said in a speech at George Washington University ahead of the 2013 World Bank-IMF Annual Meetings.
Two transitions—economic and financial
Lagarde highlighted two new transitions: one in the pattern of economic growth, and another toward a different kind of financial sector.
“The transitions I am talking about today are different,” Lagarde told the audience. “They will likely play out over the rest of the decade, if not longer. And they will require not only active national policy management, but also activeinternational policy collaboration.”
“These new global transitions need a new global agenda,” she said.
“With the right policies, these transitions can be managed,” Lagarde pointed out. “But of course, they can be derailed by the wrong policies.”
Economic transition—advanced economies
Lagarde noted that although the global outlook remained subdued, there were “signs of hope” from advanced economies—the United States, the Euro Area, and Japan.
The Managing Director stressed the important role played by monetary policy. Any pending normalization of monetary policy in the United States needs to be managed carefully, Lagarde cautioned, noting that the U.S. has a special responsibility “to implement it in an orderly way, linking it to the pace of recovery and employment; to communicate clearly; and to conduct a dialogue with others.”
'via Blog this'
No comments:
Post a Comment