THE WORLD’S economic recovery remains weak, and nations should pull together to support struggling nations, International Monetary Fund (IMF) boss Christine Lagarde said yesterday.
She called on the US to give more cash to the IMF to prop up indebted European governments.
Invoking the rural US tradition of “barn raising”, she explained that “together, the community can accomplish what the individual cannot, and everybody benefits”.
“We should think of pooling our global resources in precisely these terms,” she said, suggesting that the US should hold back from fiscal tightening because it currently benefits from very low borrowing costs, and instead give to the IMF.
“No member country has ever lost money by contributing to IMF resources – and I assure you that will not change on my watch,” Lagarde promised.