The IMF calls for maintaining the incentives to grow jobs

Managing Director International Monetary Fund (IMF), Dominique Strauss-Kahn, warned today that the stimulus measures taken to combat the current economic crisis should be withdrawn "only when the economic recovery has occurred and unemployment falls.
As part of an event held at the Bundesbank, Strauss-Kahn spoke of renewed stability, but has remained cautious about global economic recovery and has defended the need for further policy support for the system.
Although they recognized that the global economy appears to be emerging "from the worst financial and economic crisis since the war" has emphasized the risks that the recovery will be slow, not accompanied by an improvement in the labor market.
"I am concerned about the economic and social costs of high unemployment, which will persist even when financial markets and stabilize production," said the managing director of the institution.
It has also warned of the "fragility" of recovery and has warned that governments could wander "on the side of caution" regarding the timing of beginning to reverse their policies in response to the crisis. And the coordination of international policies have been an essential part of the answer to the crisis, the exit strategies "will be equally important," he explained.
Strauss-Kahn has also conducted an analysis of the economic situation and has revealed new sources of growth. From the demand side, spoke of "a global rebalancing between countries" that requires strong government action, including fixing the financial system in advanced economies and the momentum of domestic consumption in emerging Asia.

On the supply side has called for reforms to boost productivity by increasing labor flexibility and competitiveness in product markets.
With regard to economic policies, the IMF Managing Director has stressed the importance of addressing concerns about fiscal sustainability, an issue "tier" that includes spending by aging, that is "ten times greater" than the tax costs of the crisis. With regard to inflation, has explained that they expected to be a problem "until the recovery is firmly on track".

The IMF has expressed concern that the improvement of financial markets "is leading to complacency in addressing outstanding and difficult problems in the banking system, has therefore urged governments to remain vigilant to the agenda response to the crisis, including a diagnosis of banking systems and launching management programs to address the toxic assets of banks.
Side of regulation, has warned that the reforms are not being made as fast as you need and has spoken of increasing capital requirements and relate more to the risk. "The operational framework for macro-prudential supervision remains a work in progress," he explained.
With regard to compensation for the financial sector, Strauss-Kahn has stressed that the culture of risk in most financial firms has been a major factor in the crisis and warned that the recovery of the sector may lead to a return to these patterns. Therefore, the international community must stand united to make "significant progress in this area."
On the international monetary system, Strauss-Kahn has stressed that the current system is working better than it is said "in spite of their problems" and mentioned the example of the strengthening dollar during the crisis, reflecting their status as "a safe-haven asset unrivaled. "
However, to make more stable international monetary system, has emerged as essential to cut demand for reserves by the countries and a strengthening of the security mechanisms.
In this sense, the IMF can play a big role with ideas such as making access to more predictable funding, allocating their placements of special drawing rights (SDR) much closer to world events and increase their resource base.