International Monetary Fund (IMF) Managing Director Kristalina Georgieva.

(Reuters)

[Financial Channel/Comprehensive Report] International Monetary Fund (IMF) President Kristalina Georgieva said on Monday (3rd) that a global recession can be avoided if governments' fiscal policies are consistent with tighter monetary policies, but next year There may still be countries in recession.

"Reuters" reported that George Ava said that in the context of tightening monetary policy, fiscal policy cannot be idle, because the cost of living crisis is hitting parts of society hard.

The central bank does need to act decisively now because inflation is very stubborn, which is bad for economic growth and bad for the poor, calling it a "tax on the poor".

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Georgieva mentioned that fiscal policy, which "supports all indiscriminately" by suppressing energy prices and providing subsidies, is defeating the purpose of monetary policy.

In the face of high food inflation and shortages, governments around the world have come forward to support the public and followed the Federal Reserve (Fed) to raise interest rates, which also has a shock to financial markets and the economy.

The United Nations agency warned earlier on Monday that a global recession triggered by monetary policy would have severe consequences for developing countries.

And called for a new strategy, including corporate windfall taxes, supply-side efforts and regulation targeting the head base of commodities.

Georgieva called for the Fed to be cautious on policy and watch out for spillovers to the rest of the world, adding that the Fed's responsibility is "very large."

The IMF believes that the U.S. labor market is still quite tight and demand for goods and services is still quite large, and the Fed must continue to tighten policy in this environment, Georgieva said.

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