IMF Director Suggests Five Polices for Asian Countries

TEMPO.CO, Jakarta - International Monetary Fund (IMF) director Christine Lagarde said that the world economy has arrived in a new volatility showing that Asia had become a major player in the global economy.

According to Lagarde, the world has been affected by Asia’s economic slowdown, particularly in China and Japan.

“My message today is that there is reason for continued confidence in the region. Your governments fully understand what needs to be done and are ready to take further action if needed. Of course, policies need to be tailored to different countries’ circumstances,” Lagarde said in the IMF-Bank Indonesia conference entitled “The Future of Asia’s Finance: Financing for Development 2016,” on Wednesday, September 2, 2015.

According to Lagarde, polices in each country must be tailored to circumstances that include strengthening defenses with prudent fiscal policy, reining in excessive credit growth, allowing the exchange rate to act as a shock absorber, maintaining adequate foreign exchange reserves, and building up regulatory and supervisory oversight of the financial sector.

Lagarde added that Asia must also create the financial systems that can help ensuring stability and fuel.

After giving a lecture at the University of Indonesia on Tuesday, September 2, 2015, Lagarde attended a conference with Bank Indonesia. Also attending the conference were Bank Indonesia Governor Agus Martowardojo, Finance Minister Bambang Brodjonegoro, Financial Services Authority (OJK) head of board of commissioners Muliaman Hadad and other Asian economists.

TRI ARTINING PUTRI