JACKSON HOLE, Wyo. (AP) – Aug. 30, 2011 – The new head of the International Monetary Fund (IMF) urged U.S. policymakers to take more aggressive steps to stimulate the economy and ease the housing crisis.
IMF chief Christine Lagarde, speaking Saturday at an economic conference in Jackson Hole, said the United States should reach a “credible” plan to control government debts in the future, but push for stronger economic growth now.
If the economy stagnates, she said, plans to cut government spending in the future will lose credibility. “Who will believe that commitments to cut spending can survive a lengthy stagnation with prolonged unemployment and social dissatisfaction?” she said.