Managing financial stability risks, supporting growth — International Monetary Fund meet agenda

Doesn’t smoke. Doesn’t drink booze.

That’s her job. Lagarde, 59, is continuing the now quaint tradition that a European shall always lead this institution, founded just after World War II in an effort to prevent a repeat of the global financial contagion that caused the Great Depression.

“Lagarde’s comprehensive climate change agenda for the IMF is historic both for its content, and for its timing ahead of global climate negotiations this summer in Paris”, Herz said.

Many emerging markets, once the world’s fastest-growing economies which had been expected to shape a new world economic order, are now in turmoil.

Werner said the IMF has also benefited from a more stable relationship, taking lessons learned from governments in Latin America, such as Chile’s rainy day fund made up of windfall copper revenues or Mexico’s and Brazil’s direct cash transfers to the poor, and applying them in other parts of the world.

Lagarde expressed her support for the Fed’s decision as it would be “better to raise rates at the right moment than to do it too quickly and then have to go back”. It’s a controversial approach, especially during the 1997 Asian financial crisis, when the measure was applied to governments that were never profligate.

In what the International Monetary Fund officials characterized as a reflection of the cash crunch facing the oil-rich nation, Venezuelan President Nicolás Maduro’s socialist government has this year withdrawn more than $1.8 billion from a special holding account all nations have at the International Monetary Fund.

“We’re partners, we’re not the drastic, terrible prescribers”, she said. However, this could bring down the overall share of the United States in IMF-something that the fund is not sure the U.S. will agree to.

The U.S. needs credible medium-term budget plan, she said.

She told the BBC prospects for the world’s second largest economy are not all “doom and gloom” as although the country’s recovery is “decelerating a bit”, it is expected to gain momentum next year. And while she’s given strong voice to calls to cut Greek debt, German Chancellor Angela Merkel has prevailed so far with a loud “nein”.

“Normally when issues are arduous to do, it’s when they’re seen as essential that they get accomplished.”Jeroen Dijsselbloem, who chairs month-to-month conferences of the eurozone finance ministers, stated america had to take duty once more for worldwide monetary establishments”.

India has witnessed less than normal monsoons for two consecutive years.

Lagarde said implementing quota and governance reforms remains an imperative for IMF’s credibility and legitimacy.

But the extent of that lending is largely unknown, because much of it came from development banks in China that are not included in the data collected by the Bank for worldwide Settlements (the primary global source for such information).