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IMF supporting a new round of quantitative easing
Date 07/10/2010 16:24  Author webmaster  Hits 1187  Language Global
07 OCT 2010

Euro Intelligence

In its World Economic Outlook, the IMF warned about a slowdown in growth in the advanced economies, and said a resumption of the non-conventional policies may become necessary.  While the global forecasts remain broadly unchanged, the headline masks a severely uneven performance across the industrialised world , according to the FT.

The IMF warned of increased risks because policies to foster internal rebalancing of demand from public to private sources, and external rebalancing are not yet in place. Most of the global recovery is due to a strong performance of the emerging markets, but they still rely on demand from the industrialised nations. Should those risks materialise, “policy responses could include a strengthened commitment to maintaining the ultra-low policy rate for an extended period, expanding asset purchases, and relaunching facilities to aid stressed markets.”

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