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ECONOMIC CRISIS: IMF pledges to stop "runaway" of the crisis

Member states of the International Monetary Fund have sought Saturday to put aside their differences clear in front of the global financial and economic crisis, promising to take steps to stop "runaway".
"The circumstances for each of us differ, but our economies and financial systems are closely linked.Therefore, we will act collectively to restore confidence and financial stability, and revive global growth "
, Said the 187 countries in a joint statement.

"Public Debt", "fragility of the financial system", "weakening of economic growth" and "unemployment" as the problems listed by the Member States are deep, as the flexibility of governments is low.

"We will do whatever it takes to prevent the runaway of the crisis," he told a press conference Tharman Shanmugaratnam, Chairman of the Monetary and Financial Committee (IMFC), the body that sets policy guidelines of the Fund .

"There has been no denial, no one to point fingers," said Executive Director of the Fund, Christine Lagarde.

The euro area has yet been the focus of attention.

The IMFC communiqué reported a commitment it made to the rest of the world: "The countries of the euro area will do everything necessary to resolve the crisis of debt and financial stability of the area as a whole and its member states. "

It contains more promises. In developed countries: banks adequately capitalized and funded, the support of monetary policy in the activity, and structural reforms to enhance growth and employment.In emerging markets, a rebalancing of growth model in favor of domestic demand in emerging markets.

But apart from this general framework, Member States have rather spread out their differences.

For the euro area, everything depends on the implementation of the agreement reached July 21 between heads of state and government in Brussels for a more effective means of fighting against the crisis (European Financial Stability Fund). National parliaments must ratify it by mid-October.

For the U.S., this is not enough."Additional measures to increase the effective capacity of these commitments are still needed to create a firewall against the contagion more severe," said Treasury Secretary Timothy Geithner.

China joined the diagnosis."The debt crisis in the euro area needs a quick fix to stabilize the market confidence," said the Governor of the Central Bank Zhou Xiaochuan.

But he stressed that there is no problem of debt in the euro area, Beijing wants "fiscal consolidation plans clear and credible way" in "large economies".

Brazil has suggested that it gave little chance of success in an American proposal calling for greater involvement of the European Central Bank.

"Stubbornly profligate monetary policies in the countries issuing the reserve currencies have done little to support their economic recovery", said Finance Minister Guido Mantega.

Amid these global games, Christine Lagarde presented an "action plan". She also wants to "talk soon, needs" of the institution, finding that its resources "pale in the light of potential funding needs of vulnerable countries and collateral victims of the crisis."