Lagarde Calls for Increased Euro-Support

www.imf.org...

Lagarde, the IMF Monetary Fund Manager on Jan. 17 called for increased euro-stimulus, and North-American
stimulus spill-over packages which would most effectively devalue any existing global currencies or baskets
against the RMB

• In the euro area progress needs to be made on banking union, and continued monetary easing will be appropriate in order to sustain demand.

• For the United States, all sides should pull together in the national interest, reaching agreement on time on increasing the debt ceiling and on medium-term debt reduction.

(Most likely health-spending, transferred to non-profits with initiatives, or private-pay care facilities to alleviate
any government monetary "tension" that could produce any "devastating" effects on the
reserve currencies or the "advanced monetary systems".)

• Emerging market economies and low-income countries need to grow at a pace that is sustainable and also necessary for the wellbeing of their populations. Although some of these countries are much more vulnerable and open to the risk of spillover effects from the advanced economies, others are more interconnected regionally and less prone to those risks. But they should rebuild their buffers against crisis effects.