Global economy to recover next yr: IMF

Maccattack

http://au.biz.yahoo.com/090918/31/28p7e.html

Global economy to recover next yr: IMF
Saturday September 19, 2009, 6:33 am
The global economy should recover from recession in the first half of 2010, but it will take time for unemployment levels to decline, said Dominique Strauss-Kahn, the International Monetary Fund's managing director.

Mr Strauss-Kahn says recovery could happen even sooner, citing what he describes as good economic figures.

The IMF expects unemployment to continue rising through next year as economic growth falls short of potential, though economic data from countries including the United States have been relatively upbeat and points to a recovery taking form.

In an interview published by the IMF overnight, Mr Strauss-Kahn said while much progress has been made in pushing for tighter financial markets regulation, more still needs to be done.

A lack of stricter monitoring of financial markets has been blamed for the worst crisis since the 1930s. "Everybody understands that 18 months after the beginning of the crisis, we still haven't fixed the lack of regulation - not only in terms of compensation, but in other areas as well," Mr Strauss-Kahn said. He says the IMF and World Bank annual meetings in Istanbul, Turkey, next month will focus on post-crisis policies and new sources of growth.

"Now is not the time to implement exit strategies, but we have to discuss them, bearing in mind that the global economy will not be the same after the crisis," Mr Strauss-Kahn said.

"It will be a different kind of economy - maybe with fewer imbalances, but less growth."

'Consider removing stimulus'
Amid signs of recovery, debate has also been simmering on whether monetary authorities should start withdrawing stimulus measures to prevent inflation.

Mr Strauss-Kahn says the IMF could help member countries coordinate policies, even in the absence of consensus.

"In Istanbul, we want to show that if we want to avoid other crisis like this one, we need economic cooperation of this kind," he said.

Mr Strauss-Kahn has acknowledged the IMF was not "as good as we should have been in terms of warning early about the risks of crisis" but he says "we're working very hard on this and are reshaping our surveillance to that effect."

- Reuters

Économiste Monétaire

'Green shoots' was the trite term of 2 months ago; next we have: 'Jobless recovery'.

amacca

Maccattack wrote: »

Mr Strauss-Kahn says the IMF could help member countries coordinate policies, even in the absence of consensus.

Could someone explain the above to me? Consensus among what groups of people in member countries?