Lagarde in Davos: How to Avoid an Economic Deep Freeze

IMF Blog, January 27, 2012

Source details

Publication: iMFdirect
Date: January 27, 2012
Context: Remarks and appearances by IMF chief Christine Lagarde at the 42nd Annual Meeting of the World Economic Forum in Davos amid "the heaviest snowfall in Davos for decades."
Immediate concern: The IMF "recently sharply revised downward its forecast for global economic growth."

Main goal: "to get growth going again" because "that’s most needed. There is too much unemployment around the world."
Urgent need to resolve the eurozone crisis, described as central to current global economic concerns and the risk of a downward spiral—what Lagarde has called a "1930s moment."
Policy approach advocated: action must be "coordinated, cooperative and comprehensive."
Communication channels: Lagarde set out some policy priorities in a video interview and "spoke on Facebook."

Core point: While Europe may be at the epicenter of the crisis, "today’s economic difficulties are being felt in all quarters of the globe."
Responsibility: Policymakers and leaders everywhere must ensure that "their jurisdictions, their countries, their regions, but also the global community does better and actually can manage through the crisis."
IMF role and resource needs:
- The IMF has called for a big increase in its lending resources.
- Institutional mandate described: "The IMF is a guardian of stability and a builder of confidence."
- Rationale for additional funding: "there is a lot to be done at the moment, and we probably will need more funding to be able to respond to a time of crisis ... because it is our membership at large that we care for."

IMF blog post: "Lagarde in Davos: How to Avoid an Economic Deep Freeze", iMFdirect, January 27, 2012.