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Christine Lagarde ( IMF Managing Director) – Press Briefing April 18 , 2013

4 May

Christine Lagarde ( IMF Managing Director) – Press Briefing April 18 , 2013

The transcript of this IMF briefing on global economic outlook is available at http://www.imf.org/external/np/tr/2013/tr041813.htm

IMF pegs global growth rate for the current year at 3.3% and feels we have avoided the worst phase and fiscal consolidation measures have helped arrest the economic down turn. Christine lagarde feels there is an emergence of three speed economy –  those countries that are doing well , those countries that are on the mend, and those countries that still have quite a distance to travel.

The first alludes to  emerging markets and China which are growing well , second one has United states and countries like Sweden and Switzerland who are on the path to recovery with fiscal prudence and finally Euro zone which had shown minimal growth and Japan .

There is further need for more reforms in financial markets so that the old risks do not emerge again and also   financial markets growth does not really translate into job growth.

I like to hear Christine Lagarde speak as she is articulate ,prescient and brings very good perspective  . Its also wonderful to have a woman head IMF , perhaps one of  the two most important women in world economy , the other being Angela Merkel .  However have always pondered  if IMF’s prescription and conditions  for individual economies as part of aid and donor programs has worked  , perhaps it might help in dire economies like Greece and Cyprus. Its not to negate IMF advise and nomenclatures which should be very good , feel it is the politics and political executive which decides the best  way forward for a country , it is the right way , politics must precede economics. A case in point should be India , in early nineties  then political leadership brought in a professional economist to tide over a balance of payment crisis as finance minister , he did exceedingly well harboring economic liberalization.  The same finance minister in recent times as prime minister has not been able to do much in spite of being an accomplished economist , hence it is perhaps  political will and sagacity of political leadership that’s the key , but that has nothing to do with IMF 🙂 though i think madam lagarde is wonderful for the world economy…

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