IMF: emerging economies will be affected by the change of U.S. monetary policy

Posted: September 6, 2013 in Iraqi Dinar/Politics
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IMF: emerging economies will be affected by the change of U.S. monetary policy

The International Monetary Fund said in a memorandum prepared for the Group of Twenty meeting in St. Petersburg, the advanced economies, led by the United States will push global growth increasingly, while emerging economies face the risk of slowdown

As a result of tightening of U.S. monetary policy. He urged the Fund in the memo obtained by Reuters on further global action, to stimulate growth and improve risk management, warning of the growing likelihood of an economic downturn.

And looks emerging economies are particularly vulnerable to the risk of tightening of U.S. monetary policy, and recommended that the Fund policymakers prepare to address the growing financial instability. The IMF said “policy makers should allow their exchange rates to respond to the fundamental factors change, but may have to be cautious about the risks of random correction, and with actions, such as intervention to absorb excess liquidity.”

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