IMF plan to relieve global imbalances

The growing imbalances in the global economy risk triggering a financial crisis and a global recession unless the world’s leading nations draw up a joint plan to relieve the pressure, the head of the world’s financial watchdog said yesterday.

In a speech that hinted at the possibility of a 21st century version of the 1985 Plaza Accord that co-ordinated the managed fall in the dollar, Rodrigo de Rato, the managing director of the International Monetary Fund, called for “co-ordinated action”.

independent