IMF says global economy needs significantly weaker dollar

[AGENDA21]

WASHINGTON — Restoring balance in the global economy would require simultaneous shifts in demand and exchange rates — including a significant fall in the dollar and strengthening in some Asian currencies, the International Monetary Fund (IMF) said yesterday.

In its twice-yearly World Economic Outlook, the IMF renewed its warning that economic distortions were unsustainable and a threat to financial stability, ratcheting up its rhetoric on the need for big currency adjustments.

Even as the IMF warned of the dangers of imbalances, it projected another year of brisk expansion for the world economy, lifting its 2006 forecast for global growth to 4,9% from a September outlook of 4,3%.

Should that forecast materialise, it will be the fourth consecutive year global growth has topped 4%, buoyed by favourable financial market conditions and accommodative fiscal and monetary policies.

http://www.businessday.co.za/articles/world.aspx?ID=BD4A188005

[cyclezealot]

1. does the IMF think US consumers can carry the world's economies

if the dollar is worthless. this only demonstrates US weakness. A weaker dollar will do nothing to restore a healthy US trade balance. probably actually increase it. HOw can it, the US makes nothing the world wants; except military hardware. Just great.

[malaise]

2. Fugg the IMF

This agent of neoliberal policies has destroyed the lives of millions across the globe.

[aquart]

3. It's better for everyone else to destroy us? Oh, goody.

[The2ndWheel]

4. That's kind of been the point

of globalization.