IMF chief says more stimulus may be needed in 2010

Saturday, March 28, 2009 at 6:25 AM Posted by Beijing News


The head of the International Monetary Fund Dominique Strauss-Kahn said on Friday that more government stimulus plans may be needed in 2010 in order to get the world economy back on track.

Governments should "make sure that if needed more can be done in the course of 2010," Strauss-Kahn said in Paris, adding that stimulus packages launched so far were equivalent to nearly 2.0 percent of world output.

European countries including France and Germany have so far brushed off calls from the United States to increase their spending plans, saying they have done enough and there should be more emphasis on financial regulation.

Strauss-Kahn also said the European Central Bank was prepared to launch similar measures to the US Federal Reserve and the Bank of England by providing direct financing for the economy in order to stimulate growth.

"I wouldn't be surprised that this type of unconventional policy could be adopted by other central banks," he said. "I'm not afraid they would be shy" to take such action.

World leaders from the Group of 20 industrialised and developing economies will meet in London next week for a crucial summit aimed at coordinating global efforts to fight the economic downturn and preventing similar crises.

Strauss-Kahn suggested any measures agreed in London would be similar to those adopted by G20 finance ministers in February.

"I'm not expecting something very new but I expect commitments from world leaders," he said.







Kasahara

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