BERLIN Oct 30 International Monetary Fund chief
Christine Lagarde said on Tuesday advanced economies must
continue fiscal consolidation to reduce debt long-term while
emerging economies should loosen up fiscal and monetary policy
to salvage their slowing growth.
The governments of leading economies "need to continue
fiscal consolidation at a sensible pace to address debt long
term," Lagarde said in Berlin after meeting Chancellor Angela
Merkel and the heads of world economic agencies such as the
World Trade Organisation and the World Bank.
Lagarde said the industrialised world had emerged from the
financial crisis "through some degree of tepid growth" while
emerging countries had contributed more to global growth - but
were now being affected by slower growth as well.
She said emerging economies "need to loosen their monetary
and fiscal tightening to accommodate what growth there is".