Washington, Feb 19 (Entravision) .- The International Monetary Fund (IMF) emphasized today its “concern” about the financial vulnerability of the emerging markets and recommended to the advanced economies avoid a “premature” output of the monetary stimulus.
“The outflow of capital, and the higher interest rates, and the sharp depreciation of currency exchange in the emerging economies are maintained as a key concern and the continued adjustment of the financial conditions can reduce the investment and growth,” he said the Fund.
The international body run by Christine Lagarde today published the report to be presented at the meeting of ministers of Economy and central bankers of the G20 in Sydney next week.
The Fund stressed that the recent episode of volatility in the Emerging markets, with sharp depreciation in the currency of Turkey, South Africa, Argentina, or Indonesia, was due to “a confluence of factors” .
especially, stressed, those most affected were those countries with “high levels of inflation and high current account deficit” .
“But the sense of the markets has been recovered something so recent as the key emerging economies took actions to increase the confidence and strengthen your commitment to the objectives of economic policy, this final episode of financial instability emphasizes the vulnerabilities,” he added the note.
As recommendations, pointed toward macro-economic policies “credible” next to the “flexibility in the type of change”, and pointed out that wherever the inflationary pressures are still high should be considered a greater adjustment Monetary policy.
With regard to the advanced economies, reiterated the rebound lived in the latter half of the year, especially in the United States.
however, warned that with “the prospects for improvement in running, it will be essential to avoid a premature withdrawal of monetary stimulus, including USA” .
The Federal Reserve (Fed) of USA has begun a gradual and progressive output of his aggressive plan of monetary stimulus to the improvement in the US economy, something that has contributed to the outflow of capital from emerging markets in search of safer assets such as the dollar and has favored the volatility in these countries.
For its part, the IMF pointed out that the euro zone has finally come out of the recession, But that “there is a need for further monetary stimulus to raise the prospects of achieving the inflation target of the European Central Bank, and support domestic demand given the weak and fragile growth” recorded in the region.