Statement by the Managing Director to the International Monetary and Financial Committee on the Global Economy and Financial Markets
Policy Papers, October 7, 2010
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- Statement by the Managing Director to the International Monetary and Financial Committee on the Global Economy and Financial Markets
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Bibliographic details
- Published: October 7, 2010
- Series: Policy Papers
Global outlook and main findings
- "The recovery remains fragile and uneven."
- "In many advanced economies, activity is still sluggish and unemployment high, while legacy problems in the financial system remain unresolved."
- "Activity is more robust in many emerging and developing economies."
- "Their prospects also depend on a healthy, broad-based recovery among the advanced economies, owing to deep real and financial linkages."
- Key policy challenge: "to effect a smooth transition from public- to private-sector-led growth in many advanced economies, and from external to domestically driven growth in key emerging economies."
- Assessment of policies: "While short-term macroeconomic policies are broadly appropriate, completing the two rebalancing acts will require tackling the medium-term fiscal, financial, and structural challenges raised by the crisis."
- Risk warning: "Without such reforms, growth could sputter, with grave economic and social consequences."
Short-term policy stance
- Short-term macroeconomic policies: "broadly appropriate."
- Emphasis on maintaining policies that support demand while preparing for medium-term adjustments.
Medium-term fiscal, financial, and structural challenges
- Required actions: tackle "the medium-term fiscal, financial, and structural challenges raised by the crisis."
- Purpose: enable transitions to private-sector-led growth in advanced economies and to domestically driven growth in key emerging economies.
Risks and consequences
- Failure to implement required reforms could lead to growth sputtering.
- Potential outcome: "grave economic and social consequences."
Metadata and publication details
- Publication date: October 7, 2010
- Document type: Statement to the International Monetary and Financial Committee
- Subjects: Bank reforms; Economic growth; Economic recovery; Financial sector; Fiscal consolidation; Fiscal policy; Fiscal reforms; Fiscal risk; International Monetary and Financial Committee; International monetary system; Managing Director reports; Monetary policy; World Economic Outlook
Source: Statement by the Managing Director to the International Monetary and Financial Committee on the Global Economy and Financial Markets (October 7, 2010).
Content in this bundle
- The Managing Director’s Statement on the Global Economy and Financial Markets to the IMFC