The IMF calls for an effective fiscal policy to restore the economy


The IMF calls for an effective fiscal policy to restore the economy

Director General of the International Monetary Fund (IMF) Kristalina Georgieva said that the path to recovery of the global economy must be continuously strengthened with a strong policy.

International Monetary Fund (IMF) Director General Kristalina Georgieva speaking at a press conference in Washington, DC, USA. Photo: AFP / VNA

Director General of the International Monetary Fund (IMF) Kristalina Georgieva said that the path to recovering the global economy must be continuously strengthened with a strong policy, and at the same time urged governments not to stop supporting policies. financial and monetary financing too soon.

Ms. Georgieva urged governments around the world to “take firm collective action” to defeat the acute respiratory inflammatory pandemic COVID-19 and have effective fiscal policies to bolster the recovery of the global economy. rear bridge COVID-19.

Ms. Georgieva emphasized that next year’s priority is to defeat COVID-19, defeat the pandemic anywhere.

Georgieva issued the above call in a pre-recorded voice message to the 11th Tai Tan Summit (Caixin) in Beijing.

Meanwhile, 3 of the world’s leading central banks, including the Federal Reserve Bank of America (FED), Bank of England (BoE) and European Central Bank (ECB) on 12 / 11 said its economy continues to need support despite progress in developing the COVID-19 vaccine.

Speaking at an online conference hosted by ECB, Fed President Jerome Powell, BoE Governor Andrew Bailey and ECB President Christine Lagarde all welcomed the preliminary test results of a vaccine jointly developed by BioNTech and Pfizer. has achieved high efficiency.

However, all three senior officials also stressed the long-term threat of the pandemic to the economy.

Chairman Powell said the main risk facing the US economy is the growing epidemic in the country. He noted that from the outset, the central bank had said that the economy would not fully recover until people believed the situation was safe enough to resume large-scale operations. .

According to him, as the COVID-19 translation continues to be complicated in the US, the next few months will still face many challenges for the world’s largest economy.

Agreeing with Powell’s point of view, BoE Bailey said that the news on the COVID-19 vaccine is “very encouraging” and that the economy needs such optimistic news now. But he also pointed out that the vaccine is not on the market at the moment.

ECB Chairman Lagarde said that the central banks and the government will need to continue supporting measures to avoid long-term damage to the economy.

Ms. Lagarde said the ECB is likely to have a new stimulus package at the next meeting on December 10, while Mr Powell said that US policymakers had discussed the need to adjust their bond buying program as How to Increase Support for the Economy.

The Fed is buying $ 120 billion in bonds a month – including $ 80 billion in US Treasury bonds and $ 40 billion in mortgage bonds – to try to keep long-term borrowing costs low.

Speeches by three high-ranking officials come as the number of COVID-19 cases has just risen again, pressuring governments and central banks to take more measures to support the background. economy.

Both the ECB, the Fed and the BoE have deployed large-scale stimulus packages such as interest rate cuts and bond purchases, aimed at keeping borrowing costs affordable for businesses and helping them recover.

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