Managing Director’s Global Policy Agenda
Policy Papers, October 13, 2012
Source details
- Canonical URL
- Managing Director’s Global Policy Agenda
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Bibliographic details
- Published: October 13, 2012
- Series: Policy Papers
Summary of global outlook
- The global recovery has suffered new setbacks with uncertainty weighing heavily on confidence and prospects.
- Output is contracting in the euro area and growth has decelerated in many other advanced economies and major emerging markets.
- Markets have been buoyed by central bank action in the advanced economies which provides an opportunity to lay the basis for a recovery.
Main vulnerabilities and underlying weaknesses
- Fiscal weaknesses.
- Financial weaknesses.
- Structural weaknesses.
Policy priorities and recommendations
- Policymakers must detail, and aggressively implement, measures to address the underlying weaknesses—fiscal, financial, and structural.
- In the Euro area:
- Deploy the ESM and the OMT.
- Advance banking union.
- National authorities should implement strong policies to credibly ensure fiscal consolidation over the medium-term and to raise growth and employment.
- In the U.S.:
- Immediate priority is to resolve the fiscal cliff and raise the debt ceiling.
- Develop an appropriately ambitious medium-term fiscal consolidation plan.
- For other advanced economies:
- The Fund will assess the implications of the underlying policy framework.
IMF role and actions
- The Fund will support Euro area members’ efforts by:
- Assisting in the development and monitoring of well-designed adjustment programs.
- Providing analysis and advice on options for banking and fiscal union.
- For other advanced economies, the Fund will assess implications of their policy frameworks.
Publication details
- Publication date: October 13, 2012
Managing Director’s Global Policy Agenda (web landing page).
Content in this bundle
- IMF Managing Director's Global Policy Agenda, IMFC; October 13, 2012