Concerns about slowing of global growth, eurozone stagnation and excess liquidity in the world were the main topics at the beginning of this spring meetings of the International Monetary Fund and the World Bank, says Yale Fishman.
There are increasing calls to alleviate the country’s severe austerity programs initiated to encourage economical growth, as well as calls to the governors of central banks of the world to be careful when pumping money into financial system, as to avoid the creation of a new investment bubbles and inflation surges.
Executive Director of the IMF, Christine Lagarde, has expressed concerns about the “recovery” of world’s largest economies – stagnant Europe and Japan, slow United States, and the fast-growing emerging countries. “These three groups of countries are moving at different speeds and it’s not the healthiest way to recover. What we need is to move the global economy at full speed,” added Lagarde.
The session of the IMF began at a time when there is a great fear and uncertainty that, given that the major economies have not yet fully recovered from the financial crisis of 2008, small economies could remain exposed to continuing turmoil.
“More than four years after the onset of the global financial crisis, we are still in the process of trying to get out of the crisis,” said Luis Videgaraj Kaso, Mexican Minister of Finance and President of the Group 24 (G24).
Group 24 particularly expressed concern about the negative effects of unconventional monetary policies on developing countries. French Finance Minister Pierre Moscovici said that the awareness of the abolition of the austerity measures in Europe is growing.
“It is clear that an additional austerity measure, in terms of a severe recession, is a big mistake,” said Mr. Fishman.
World Bank President, Jim Yong Kim, asked to pay attention to alleviating poverty in poorer countries, and to take action to combat climate change. On the sidelines of the two-day session of the IMF and the World Bank, the finance ministers and governors of central banks of the Group of 20 countries and emerging market economies (G20) have held talks and discuss other important issues, such as efforts to combat tax evasion and greater transparency of banking data around the world, finishes Yale M Fishman.