IMF chief asks for more stimulus in 2010

by Ricky Rillera

PARIS (Xinhua) — The head of the International Monetary Fund (IMF), Dominique Strauss-Kahn, said on Friday the world economy may need more stimulus in 2010, and governments should be prepared to do more.

Governments should “make sure that if needed more can be done in the course of 2010,” he said at a news conference in Paris.

“What has been announced in terms of fiscal stimulus is broadly in line with the 2 percent of global stimulus that we were asking” for 2009, he said.

But “governments should be prepared to do more,” Strauss-Kahn said.

European countries have been resisting a call from the US government to spend more, saying they want to place more emphasis on financial regulations.

Global leaders should make fixing the financial sector their priority at the upcoming G20 summit in London on April 2, Strauss-Kahn said.

He said the European Central Bank is prepared to take measures to ease tight credit conditions, similar to those of the US Federal Reserve and the Bank of England.

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