Policymakers attending IMF and World Bank meetings this week should agree to end ultra-loose monetary policies and high fiscal debt, a senior German government official said.
“It would be an excellent time this autumn to get a strong commitment from (the meeting in) Washington to put an end on excessive debts and loose policies,” said Ludger Schuknecht, chief economist of German Finance Minister Wolfgang Schaeuble.
“If we want to press ahead with what is really needed, we need an exit from the extraordinary now,” Schuknecht added.
Schuknecht said the IMF in its latest review had rightly pointed to increasing risks to financial stability resulting from over-expansionary monetary policy.
“Search for yield by investors around the world, risk of fiscal dominance looming for central banks, misallocation in the real economy all put our common goal of strong, sustainable, balanced and inclusive growth at risk,” he warned.
Source: Reuters (Reporting by Michael Nienaber and Gernot Heller,; editing by Joseph Nasr)