IMF Chief Economist: Global Economy Is Recovering - Report
PARIS -(Dow Jones)- The global economy is convalescing, and although it is far
from being in good health it is the best that can be expected after skirting a
major depression, the chief economist of the International Monetary Fund is
quoted as saying Monday.
In an interview published in the daily newspaper Le Monde, Olivier Blanchard
said he is "not very worried" about the risk of inflation, as central banks can
act to reduce money supply and raise interest rates if necessary.
Central banks can act even if it means the size of their balance sheets will
remain large, for example by increasing the interest they pay on banks' reserve
deposits, he said.
The flow of liquidity into emerging market countries that aren't in perfect
health could have negative consequences, he said.
"Brazil can only be harmed by the appreciation of the real when the yuan
depreciates against the dollar," Blanchard is quoted as saying.
-By David Pearson, Dow Jones Newswires; +33 140171740, david.pearson@
dowjones.com
(END) Dow Jones Newswires
11-23-090645ET
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