In order to revive economy, IMF asks governments worldwide to spend more

Kristalina Georgieva managing director of International Monetary Fund suggested policymakers worldwide on Friday at Russia’s annual Gaidar economic forum to support the spending of money to revive the economy. No specific economic forecast was provided by the director.

Kristalina Georgieva said, “In terms of policies for right now, very unusual for the IMF, starting in March I would go out and I would say ‘please spend’. Spend as much as you can and then spend a little bit more.”

“I continue to advocate for monetary policy accommodation and fiscal policies that protect the economy from collapse at a time when we are on purpose restricting both production and consumption,” she added.

Georgieva praised Russia’s synchronized response to the economic challenges created by the COVID-19 pandemic, mentioning both the central bank’s monetary easing and fiscal stimulus from the finance ministry, Reuters reported.

Pressurizing on international cooperation she further asked for a synchronized approach internationally for better growth. In 2020, the IMF provided support to 83 countries, she said.

“IMF staff calculated that a coordinated G20 fiscal stimulus in green infrastructure if it is done in a coordinated manner, would deliver two-thirds more in growth … than if each country acts on its own,” she said in the conference.

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