Economy
In reply to the discussion: STOCK MARKET WATCH, Wednesday, December 14, 2011 [View all]Ghost Dog
(16,881 posts)NEW YORK (Reuters) - The International Monetary Fund's chief economist cautioned on Wednesday against exacting tough austerity measures too quickly and instead favors a longer process as countries around the world grapple with high debt levels.
The IMF's Olivier Blanchard said he was surprised over the debate over whether the best way forward was more stimulus to boost economic growth or tighter measures to deal with deficits, saying in most circumstances austerity would lead to contraction.
"The hope that fiscal consolidation will make people optimistic about the future and lead to a boom in the economy next year I think is something we should give up," said Blanchard, speaking on a panel at the Council on Foreign Relations in New York...
... "It seems to me everybody should agree that the fiscal adjustment should be a long, drawn out, credible, medium-term process," said Blanchard, who also said austerity was clearly needed.
/... http://www.courant.com/business/sns-rt-us-usa-economy-blanchardtre7bd199-20111214,0,5000168.story
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