US: IMF must be more vo­cal on global econ­omy

The Myanmar Times - - International Business -

THE United States has called for the In­ter­na­tional Mone­tary Fund to speak out on cru­cial global eco­nomic mat­ters, such as ex­change rates, even if this made it un­pop­u­lar.

“The IMF must in­ten­sify anal­y­sis of and be­come more vo­cal on key is­sues that im­pact growth and sta­bil­ity of the global eco­nomic sys­tem,” US Trea­sury Sec­re­tary Ja­cob Lew said, cit­ing cur­rency ex­change rates, cur­rent ac­count im­bal­ances and de­mand short­falls.

“Some­times this will make the IMF un­pop­u­lar,” he added. “But vo­cal ad­vo­cacy in the name of its core man­date is likely to make the IMF a more ef­fec­tive in­sti­tu­tion over the long term.”

The United States, which is the IMF’s largest share­holder, said it ex­pected the global cri­sis lender to do more to prod coun­tries like Ger­many to spend more of their bud­get sur­pluses to spur global growth.

“I urge the IMF to be more vo­cal in press­ing coun­tries with ex­cess ca­pac­ity to pur­sue fis­cal mea­sures that smooth the tran­si­tion away from ex­cess pro­duc­tion while main­tain­ing de­mand,” said Mr Lew.

The US also called on the World Bank, where it is also the largest share­holder, to “bet­ter man­age” the strain that mem­ber states’ grow­ing de­mands were putting on the de­vel­op­ment lender’s re­sources.

World Bank Pres­i­dent Jim Yong Kim ac­knowl­edged that his in­sti­tu­tion’s re­sources had been put to the test by the new mis­sions en­trusted to it, par­tic­u­lar con­cern­ing cli­mate change and the refugee cri­sis.

“It’s hard to see how we’re go­ing to meet all those de­mands with­out a cap­i­tal in­crease,” he said. –

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