Time to Get Beyond the Crisis, Says IMF's Lagarde

  • Cooperative action and implementation of agreed decisions needed to move beyond crisis in the eurozone
  • Anchoring of expectations will be key in Europe, United States, and Japan
  • Annual Meetings in Tokyo to focus on further action needed to achieve sustainable and inclusive growth
  • “It’s a question of really trying to get beyond the crisis in the eurozone, asserting a medium-term plan for countries like the United States and Japan, and making sure that some of the issues that actually created the crisis five years ago are really dealt with, not just half dealt with. And I’m particularly thinking about the financial sector,” she said, speaking ahead of a speech at the Peterson Institute for International Economics in Washington D.C. on September 24 that will preview the agenda for the upcoming Annual Meetings of the IMF and the World Bank.

    In early October, about 10,000 policymakers, business leaders, academics, civil society representatives, and journalists will gather in Tokyo to discuss the outlook for the world economy, and how to address issues ranging from the eurozone crisis, to high unemployment, rising food prices, and better regulation of the financial sector.

    Continued uncertainty

    The Meetings are being held at a time of continued uncertainty for the world economy, and after further action in September by the European Central Bank, the U.S. Federal Reserve, and the Bank of Japan to restore confidence and stimulate growth and job creation.

    In the interview, Lagarde discusses the challenges facing not just Europe but also the United States, emerging markets, and low-income countries. She also provides an update on the IMF’s efforts to implement an important governance reform that will give more say to fast-growing emerging markets in Asia and elsewhere.

    The meetings will kick off with the IMF’s regular update of its World Economic Outlook on October 9, followed by more than 300 other events, including press briefings, seminars, and bilateral country meetings. The IMF’s policy steering committee will meet on October 13, and is expected to discuss further action needed to achieve sustainable and more inclusive economic growth.

    IMF Survey: It’s been five years since the crisis first erupted in the U.S. mortgage market and the world economy still has not recovered its stride. In fact, many have warned of a second Lehman moment unless problems in the eurozone and elsewhere are addressed decisively. What will it take to really...

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