A senior official of the International Monetary Fund (IMF) on Wednesday called for "decisive policy action" to strengthen global financial system.
John Lipsky, IMF first deputy managing director, noted that authorities worldwide must also "think the unthinkable" so that they can better anticipate and react to potential global economic risks.
"By now, there is little doubt that risks of further escalation of this crisis are rising and decisive policy action will be required to put the global financial system and economy on a firmer footing," Lipsky said in an address at the Peterson Institute for International Economics in Washington DC.
He stressed that the first priority was to reverse the spreading strains in global financial markets and to restore the normal functioning of the financial system in advanced economies.
"The actions taken yesterday by several central banks are helpful, as they reflect a recognition of the critical need to assure market liquidity," he said.
The IMF leader also told media Tuesday that the Federal Reserve was paying close attention to the linkages between financial markets strains and the real economy, which was appropriate.
Source:Xinhua
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