************** IMF: global economy at risk

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************** IMF: global economy at risk

Post  Admin on Sun Oct 12, 2014 9:47 am

Sunday 12 October 2014
| 08:36

Committee called for central banks to caution when detecting changes in their policies to avoid causing shocks in the financial markets

Said the member countries of the International Monetary Fund that it must take bold measures to strengthen the global economic recovery and urged governments to be careful not to dampen growth by narrowing spending more heavily than they should.

Indicated the Steering Committee of the International Monetary Fund to that with the faltering economy, Japan and subjected the Euro zone to the risk of recession and because American recovery is too weak to help generate an increase in the entry, the focus on growth must be a priority.

The committee said international financial and monetary in a statement on behalf of the member countries of the Fund and the 188 "number of countries face the possibility of weak growth or decline with unemployment rates remain unacceptably high."

The fund was cut this week predictions for global growth in 2014 to 3.3 percent from 3.4 percent, the third reduction this year, with receding prospects for a sustainable recovery from the global financial crisis in 2007-2009, and in spite of the world's central banks to pump large amounts of liquidity in the markets.

He described the IMF weakness of the European economy as the biggest concern, a feeling expressed by many policy makers and economists and investors who gathered in Washington to attend meetings of the IMF's fall, which concludes today.

The committee urged the IMF countries to implement difficult reforms from the political perspective of the labor markets and security meetings to ensure the provision of government funds to invest in infrastructure and job creation, employment and enhance growth.

The Committee called on central banks to cautious when it detects changes in their policies to avoid causing shocks in the financial markets.

 It did not give the name of any central banks, but it seemed that the warning is addressed to the Federal Reserve (Central American Bank), which will end this month, the quantitative easing policy in which it operates and it seems to be heading towards the start procedures for increases in interest rates around the middle of next year.



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