Business News
  View Archive









Posted by Editor on 28th January 2012 at 04:15 PM
IMF Managing Director, Christine Lagarde's interview in Davos, January 27, 2012 - Part 1 of 3
The IMF's Managing Director, Christine Lagarde, has been making the case in recent days for urgent collective action to save the world economy from a downward economic spiral.

She joins us from Davos, Switzerland where discussions have continued on how to resolve the eurozone crisis, at the center of global concerns.

Shotlist:
QUESTION: Camilla Andersen: You have in recent days warned of a "1930s moment" for the world economy unless policymakers around the world―not just in the eurozone―make the right decisions. Based on your recent interactions with policy makers, including in Davos, how optimistic are you that it will happen?

ANSWER: Christine Lagarde, MD, IMF: Leaders are responsible for making sure that their jurisdictions, their countries, their regions but also the global community does better and actually can manage through the crisis. So I'm sure that they will be concerned about making that coordinated, cooperative and comprehensive move that we have been advocating, and that I was advocating in Berlin.

The euro partners have to do several things―and I will come back to that―with the U.S. and Japan really focusing on anchoring their mid-term policy on solid fiscal consolidation, and where the emerging market economies, particularly those that are in a surplus position, can actually focus a bit more on their domestic consumption rather than rely extensively on either investment or exports.

Turning to Europe, we have said―and I say to whomever I meet here in Davos―that it will require different movements. One, on growth: clearly, because that's most needed. There is too much unemployment around the world, and there is too much unemployment in the eurozone in particular. They must concentrate on developing a credible and solid firewall and they must integrate better so that in addition to being a good monetary zone, they also have a fiscal region that is well coordinated.

Now, on growth for the eurozone, we mean several things. We mean a good, sensible, tailor-made fiscal policy that is predicated on consolidation―compulsory in some corners, more slow in those countries that have fiscal room. It is predicated on a definite move towards better competitiveness, and for that structural reforms will be needed. And finally, it's also predicated on a monetary policy that will support the other two.

Due to problems with spam only SalfordOnline members can now leave comments. Becoming a member of SalfordOnline only takes a minute, just hit the red Join Us button at the top right hand side of the page to create your Personal account.



Got a news story? Need help with publicity for an event in Salford? Send it to newsdesk@salfordonline.com or call the SalfordOnline newsdesk on 0161 789 5377.