IMF's Rajan on perspectives on global imbalances

In the speech 'Perspectives on global imbalances' given on 23 January Raghuram Rajan of the IMF called on the US to cut its fiscal deficit to help counteract global imbalances.

'The US should reduce its fiscal deficit,' Rajan told a conference on global financial imbalances here, adding that some of the measures the US government has proposed so far have been 'optimistic at best'.

'The incentives for countries to push through structural reforms has been lessened, and this has to change,' he said

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