The International Monetary Fund's (IMF) Christine Lagarde has said that she sees new global risks on the horizon, labelling uncertainty over recovery of the Eurozone as an old risk.
Saying that the worst is "most likely" over for East Europe as most countries have returned to growth, Lagarde warned that the lesson of the crisis is not to turn away from integration.
LESSON OF CRISIS IS NOT TO TURN BACK ON INTEGRATION: LAGARDE // Not quite, lesson is European Integration is a complete and utter disaster— deltahedge (@minefornothing) July 16, 2013
Lagarde said that unconventional monetary policies pursued by the big central banks - the Federal Reserve, European Central Bank, Bank of England, and Bank of Japan - have had consequences for capital flows and that unwinding these policies would need to be carefully phased.
The IMF boss also said that the fiscal situation in the US - specifically referring to the fiscal cliff and debt ceiling - were also risks to global growth.
IMF's Lagarde sounding gloomy on unconventional CB intervention and effects on capital flows— Mike van Dulken (@Accendo_Mike) July 16, 2013