Emerging economies should 'ensure soft landing'
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Xinhua, January 29, 2012
A senior IMF official emphasized on Thursday the urgency for emerging countries to ensure a soft landing amid deepening euro zone crisis.
David Hawley, deputy director of external relations department at the International Monetary Fund, reiterated the fund's policy action message to emerging countries at a new conference. "The immediate policy priority is to ensure a soft landing as domestic growth and demand from advanced economies moderate," he said.
In its updated World Economic Outlook Report released on Tuesday, the IMF said the near term focus for emerging and developing countries should be on responding to moderating domestic demand and slowing external demand from advanced economies.
The IMF outlined policy options for emerging countries in the note it prepared recently for G20 Deputy Finance Ministers and Central Bank Governors meeting in Mexico city.
It said that monetary policies could be eased in economies with diminishing inflationary pressure. It advised economies with low inflation, high public debt and large external surpluses to increase social spending.
The IMF cautioned that policy space would be more limited in those countries that suffer from both relatively high inflation and public debt.
