IMF head Christine Lagarde on bloomberg tv.
- US needs fiscal consolidation, but not too much
- Concerned about “right balance” to austerity for world economies
- ECB only central bank with “a bit of space” (talking mon pol)
- Japan central bank has clearly innovated
Meanwhile Reuters are out with a story saying that due to the IMF’s failure to predict the Sub-prime or Eurozone crisis they are now overloading reports with alerts on possible downside risks.
Nothing like the scatter gun approach to predictions