IMF's Lagarde warns on debt, EMs, trade tensions

Author: Eamonn Sheridan | Category: News

IMF Managing Director Lagarde speaking from Indonesia:

  • Global economy probably not strong enough
  • with global public debt at all-time high, any slight change in wind could provoke capital outflows in emerging markets
  • our strong recommendation is to de-escalate trade tensions, work toward global trade system that is stronger, fairer and fit for purpose
  • Some countries have right fundamentals, worked hard on policy mix and are in strong position which is why we believe we are not seeing contagion in markets
  • Supports China moves toward currency flexibility
  • Hopes countries do not move towards direction of trade war or currency war
  • Hopes China follows recommendation on keeping yuan flexible 
Lagarde will be happy with the stock market volatility - it'll mean someone might take note of her comments. Get a bit of publicity for the IMF. 


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