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IMF Urges Governments To Spend As Much Money As They Can To Support Sputtering Economies

by Daily Hodl Staff
January 18, 2021
in Futuremash

International Monetary Fund (IMF) managing director Kristalina Georgieva is urging policymakers worldwide to spend as much as they can to revive their economies.

In a Reuters report, Georgieva advocates for fiscal policies that encourage spending instead of measures that purposely tighten the purse strings to prevent economic collapse as the pandemic rages on.

“In terms of policies for right now, very unusual for the IMF, starting in March I would go out and I would say, ‘Please spend.’ Spend as much as you can and then spend a little bit more. I continue to advocate for monetary policy accommodation and fiscal policies that protect the economy from collapse at a time when we are on purpose restricting both production and consumption.”

The IMF’s managing director also highlights the importance of ramping up government spending in a synchronized manner across the globe to achieve the best results.

Georgieva appeals to countries all over the world to cooperate when investing in green technology and the digital economy. She says that a multi-lateral and coordinated approach in green technology investments would result in a higher growth rate.

“IMF staff calculated that a coordinated G20 fiscal stimulus in green infrastructure if it is done in a coordinated manner, would deliver two-thirds more in growth… than if each country acts on its own.”

In 2020, the IMF provided financial support to over 83 countries, according to Georgieva.

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