Global liquidity provision system needed: IMF’s Blanchard
The crisis has shown the need for global liquidity provision, said Olivier Blanchard, the chief economist at the International Monetary Fund.
Blanchard said foreign-exchange reserves accumulation and bilateral credit lines were a second-best solution. A flexible credit line, such as the contingent credit line introduced by the Fund in March, where countries needed to prequalify but faced no conditionality, provided a useful start and it was time to explore how to improve it.
He made the
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