Myriad of comments from IMF’s Strauss-Kahn hitting wires.
- Resurging capital flows to emerging markets present policy challenges
- Emerging market capital flows may trigger destabilising moves in fx, asset markets
- Tools to ease inflows incl fx appreciation, tight fiscal policies, lower interest rates
- Asia shouldn’t resist gradual fx appreciation as prerequisite for global rebalancing
- Loose policies must stay until firm recovery
- Some emerging markets must unwind crisis support “sooner rather than later”
- Policymakers in all countries should start planning exit strategies now
- Global economic recovery remains fragile