IMF joins financial leaders to warn about halting spending too soon during Covid-19
The message from the most powerful central banks is increasingly clear: there are limits to what monetary policy can do to help in the short run
14 October 2020 - 17:18
Washington DC — The International Monetary Fund (IMF) says more public spending will be needed to complete the economic recovery from coronavirus, joining central bankers and finance leaders who are urging governments to set aside fears about mounting debt for now.
The Fund, historically a champion of budget restraint, on Wednesday published its most detailed study of the pandemic’s effect on public finances. It said global government debt would “make an unprecedented jump” in 2020, but it was “not the most immediate risk. The near-term priority, instead, is to avoid premature withdrawal of support.” ..
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