{
  "title": "Transcript of a Press Conference by IMF Managing Director Dominique Strauss-Kahn following the Group of 20 Finance Ministers and Central Bank Governors Meeting, Paris, France",
  "publication": "IMF News, February 20, 2011",
  "sourceUrl": "https://www.imf.org/en/news/articles/2015/09/28/04/54/tr021911",
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  "summary": "Recovery is \"strengthening\" due to measures over the past three years, and coordination of economic policy helped avoid a crisis \"as big as the Great Depression.\"",
  "publishDate": "2011-02-20",
  "sections": [
    {
      "heading": "Recovery: status and unevenness",
      "content": "- Recovery is \"strengthening\" due to measures over the past three years, and coordination of economic policy helped avoid a crisis \"as big as the Great Depression.\"\n- Recovery is uneven among countries:\n  - Asia doing well.\n  - Latin America doing well.\n  - \"Even African countries\" recovering faster than in the past.\n  - Forecast: \"4.5 growth in Sub-Saharan Africa this year, same thing next year.\"\n  - U.S. described as \"uncertain\" and dependent on next quarters.\n  - \"A lot of problems in Europe, and especially in the Euro Zone, where the growth rate is much lower than what we would like.\"\n- Recovery is uneven within countries:\n  - Unemployment remains \"still very high, especially in advanced economies.\"\n  - Inequalities are increasing.\n  - Concern that growth not translating into jobs undermines stable and sustainable growth.\n  - Recent events in North Africa linked to good macro indicators coexisting with high internal inequalities."
    },
    {
      "heading": "Risks and price pressures",
      "content": "- Warning about \"overheating\" or signs of overheating in some emerging economies: rising inflation, bubbles, real estate risks.\n- Rising food and fuel prices compared to 2008: \"we’re almost at the same level\" with threats to vulnerable and low-income countries and people.\n- Emphasis on need for strong action at national and international levels to address commodity price hikes and distributional effects."
    },
    {
      "heading": "Financial sector reform: progress and gaps",
      "content": "- Progress largely in regulation (e.g., higher capital standards, Basel III), but \"not enough.\"\n- Two key pillars lagging:\n  - Supervision: \"The sub-prime crisis -- was even more a crisis of bad supervision than a crisis of bad regulation.\"\n  - Cross-border resolution: unresolved questions about which authorities (home or host) handle failing cross-border banks.\n- Concerns about financial sector returning to \"business as usual\": bonuses persist; seeds of a possible next crisis are being sown.\n- Fiscal consolidation remains a problem in some countries; deficits \"still very important.\" Greece and Ireland cited as extreme cases."
    },
    {
      "heading": "IMF proposals and instruments",
      "content": "- Financial Activity Tax (FAT):\n  - Proposed at G-20 Toronto as IMF's version of the Tobin Tax.\n  - IMF proposed \"two taxes\" for technical reasons; aimed to raise revenue and curb risky behavior.\n  - Strauss-Kahn: \"I don’t see those taxes implemented\" so far; he is \"very unhappy\" but retains hope.\n  - IMF view: FAT \"much more effective\" than traditional financial transaction tax because it does not require all players (including tax havens) to be on board.\n- Mutual Assessment Program (MAP):\n  - G-20 agreed on set of indicators for the MAP; IMF to provide technical support and run simulations.\n  - Expected gains from implementing \"the right policies\" as identified by MAP simulations:\n    - \"2.5 percentage of growth in five years.\"\n    - \"More than 30 million jobs.\"\n    - \"More than 40 million people left out poverty.\"\n- International Monetary System (IMS) reform and SDRs:\n  - IMS reform back on agenda; IMF central to discussion on exchange rates, reserve accumulation, capital inflows.\n  - SDR currently \"a basket of currency, so far including the dollar, the euro, the yen, and the pound.\"\n  - Strauss-Kahn supports inclusion of the renminbi in the SDR but notes technical requirements:\n    - Currency size and use matter.\n    - \"It has to be a currency which is freely valued by the market. And it’s not the case of the renminbi.\"\n    - Inclusion would require at least partial convertibility for the portion to be included.\n  - IMF has released papers arguing that \"sometimes, after having used other tools, capital control can be the right thing.\""
    },
    {
      "heading": "Europe-specific recommendations",
      "content": "- Call for a comprehensive European plan to address crises proactively rather than ad hoc, last-minute interventions (Greece, Ireland examples).\n- Urges European leaders to prepare and propose a comprehensive plan at the European Council \"that’s going to take place at the end of March -- 25th or something like this.\"\n- Notes difficulty in achieving multilateral coordination as perceived crisis urgency wanes."
    },
    {
      "heading": "Vision for the IMF and multilateralism",
      "content": "- Role played by the IMF during the crisis highlighted: early stimulus advocacy (January 2008), coordination of stimuli and monetary policy, resource provision, global analysis for G-20.\n- Institutional vision: transition from \"IMF 1.0 to IMF 2.0\" achieved; next goal is \"IMF 3.0\" — broaden focus beyond monetary questions to \"all financial questions,\" possibly involving long-term treaty changes and even a new name.\n- Emphasis on the need for multilateral institutions in a globalized world to organize global economic interactions."
    },
    {
      "heading": "Notable Q&A points",
      "content": "- On timing/outcomes of IMS reform: progress likely but \"the delay\" is uncertain; foundations must be laid now.\n- On FAT implementation prospects: Strauss-Kahn \"doesn’t see it so far\" but \"I have hope.\"\n- On renminbi inclusion and engagement with China: Strauss-Kahn has \"many opportunities to talk with the ministers, the Vice Premier Wang Qishan, the Governor -- Governor Zhou\"; favorable to renminbi inclusion contingent on convertibility and size/use criteria.\n- On capital controls: IMF papers indicate capital controls can be appropriate after other tools have been used.\n\nTranscript, Paris, France, February 19, 2011 — International Monetary Fund\n\n---\n\n\n References\n\n- France and the IMF\n- Republic of Korea and the IMF\n- People's Republic of China and the IMF\n- Greece and the IMF\n- Ireland and the IMF\n- Special Drawing Rights (SDRs) -- A Factsheet\n- Transcripts\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2015/09/28/04/54/tr021911"
    }
  ],
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    "Published: February 20, 2011",
    "Recovery is \"strengthening\" due to measures over the past three years, and coordination of economic policy helped avoid a crisis \"as big as the Great Depression.\"",
    "Recovery is uneven among countries:",
    "Recovery is uneven within countries:",
    "Warning about \"overheating\" or signs of overheating in some emerging economies: rising inflation, bubbles, real estate risks.",
    "Rising food and fuel prices compared to 2008: \"we’re almost at the same level\" with threats to vulnerable and low-income countries and people.",
    "Emphasis on need for strong action at national and international levels to address commodity price hikes and distributional effects.",
    "Progress largely in regulation (e.g., higher capital standards, Basel III), but \"not enough.\"",
    "Two key pillars lagging:",
    "Concerns about financial sector returning to \"business as usual\": bonuses persist; seeds of a possible next crisis are being sown.",
    "Fiscal consolidation remains a problem in some countries; deficits \"still very important.\" Greece and Ireland cited as extreme cases.",
    "Financial Activity Tax (FAT):",
    "Mutual Assessment Program (MAP):",
    "International Monetary System (IMS) reform and SDRs:",
    "Call for a comprehensive European plan to address crises proactively rather than ad hoc, last-minute interventions (Greece, Ireland examples).",
    "Urges European leaders to prepare and propose a comprehensive plan at the European Council \"that’s going to take place at the end of March -- 25th or something like this.\"",
    "Notes difficulty in achieving multilateral coordination as perceived crisis urgency wanes.",
    "Role played by the IMF during the crisis highlighted: early stimulus advocacy (January 2008), coordination of stimuli and monetary policy, resource provision, global analysis for G-20.",
    "Institutional vision: transition from \"IMF 1.0 to IMF 2.0\" achieved; next goal is \"IMF 3.0\" — broaden focus beyond monetary questions to \"all financial questions,\" possibly involving long-term treaty changes and even a new name.",
    "Emphasis on the need for multilateral institutions in a globalized world to organize global economic interactions.",
    "On timing/outcomes of IMS reform: progress likely but \"the delay\" is uncertain; foundations must be laid now.",
    "On FAT implementation prospects: Strauss-Kahn \"doesn’t see it so far\" but \"I have hope.\"",
    "On renminbi inclusion and engagement with China: Strauss-Kahn has \"many opportunities to talk with the ministers, the Vice Premier Wang Qishan, the Governor -- Governor Zhou\"; favorable to renminbi inclusion contingent on convertibility and size/use criteria.",
    "On capital controls: IMF papers indicate capital controls can be appropriate after other tools have been used.",
    "[France and the IMF](http://www.imf.org/external/country/FRA/index.htm)",
    "[Republic of Korea and the IMF](http://www.imf.org/external/country/KOR/index.htm)",
    "[People's Republic of China and the IMF](http://www.imf.org/external/country/CHN/index.htm)",
    "[Greece and the IMF](http://www.imf.org/external/country/GRC/index.htm)",
    "[Ireland and the IMF](http://www.imf.org/external/country/IRL/index.htm)",
    "[Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)",
    "[Transcripts](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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