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IMF on global challenges and solutions

0 CommentsPrint E-mail China.org.cn, April 7, 2011
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Dominique Strauss-Kahn, Managing Director of IMF, expressed his opinion on the global challenges and solutions.

He pointed out that the current task is to rebuild the foundation of stability, make the next phase of globalization work for all.

"I think this rebuilding has three core areas. The first one has to do with the new approach to economic policy, the second with a new approach to social inclusion and the third, to a new approach to cooperation and multilateralism," he said.

Recently in the press it has been written that the IMF is in favor of this kind of change in policy, but Strauss-Kahn denied this. He said: "We are supporting the Greek government in that it doesn't want a restructuration of the debt."

"I think we should have a very pragmatic view. When capital flows are just a regular flow coming from the fact that people are expecting a high return in this country because the rate of growth is big, then it's fine," he said. "Then it has to lead to its natural consequences of this, which is revaluation of the currency because the economy is becoming stronger and stronger. So the first measure to take to avoid too big capital inflows is to have the currency flowing freely and appreciating when you have this kind of thing."

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