More Action Needed to Combat Spreading World Crisis, IMF Says

• Pages: 185

Page 185

Governments need to take additional coordinated action to revive world financial markets and get credit flowing again, the IMF says, warning that the global economic outlook continues to deteriorate.

In a December 15 speech at the Spanish central bank in Madrid, IMF Managing Director Dominique Strauss-Kahn said that action is needed on three fronts to prevent the current recession turning into a global depression: coordinated government intervention in financial markets to get credit flowing and support bank recapitalization; fiscal measures to offset the abrupt fall in private demand; and liquidity support for emerging market countries to reduce the adverse effects of the widespread capital...