Emerging markets must counter the dollar carry trade by tightening monetary policy, Dominique Strauss-Kahn, the managing director of the International Monetary Fund (IMF), has said.

Strauss-Kahn told business leaders in London on Monday there was "no way to avoid" exit strategies differing in timing between countries: "Especially in many advanced economies, monetary policy can afford to stay accommodative for some time, given little sign of inflation on the horizon. But some emerging economies