The head of the IMF said on Saturday it still believes in “low and stable inflation” despite a suggestion from its chief economist that targets could go higher.
At a conference in Cambridge, England, Dominique Strauss-Kahn played down proposals made by Olivier Blanchard in February that inflation targets could be raised from about 2 percent to 4 percent to allow central banks to respond better to shocks.
“I think this is an interesting idea that merits serious discussion, but it is not the principal question for monetary policy and should not distract us from more important concerns,” Strauss-Kahn said. “Let me also be clear — we remain an institution that believes that low and stable inflation delivers positive benefits for growth and macroeconomic stability.”
Earlier this week, it was reported that Germany’s Bundesbank had sharply criticized a joint IMF-EU aid plan for stricken Greece, saying the IMF had become the “Inflation Maximizing Fund.”
The EU-IMF scheme to bail Greece out has been highly contentious, mainly because of German ambivalence linked to its concerns over protecting the credibility and stability of the eurozone and monetary conditions in Germany.
Protesters briefly disrupted Strauss-Kahn’s speech at Cambridge University’s King’s College, which was hosting a conference organized by the Institute for New Economic Thinking, a body set up with a grant from financier George Soros.
Concealed above the stage in the main hall, the protesters unveiled a large banner behind Strauss-Kahn which read: “The IMF is part of the problem, not the solution.”
One of them cried: “Shut down the IMF.”
The banner was quickly removed and Strauss-Kahn brushed off the protest. Security staff, who said the protesters were young people and likely students, escorted them from the building.
Commenting on the global economic crisis, Strauss-Kahn said the world was on the path to recovery, but it remained “sluggish and uneven,” and the costs, such as high unemployment and public debt, “will take many years to overcome.”
Beijing’s continued provocations in the Taiwan Strait reveal its intention to unilaterally change the “status quo” in the area, the US Department of State said on Saturday, calling for a peaceful resolution to cross-strait issues. The Coast Guard Administration (CGA) reported that four China Coast Guard patrol vessels entered restricted and prohibited waters near Kinmen County on Friday and again on Saturday. A State Department spokesperson said that Washington was aware of the incidents, and urged all parties to exercise restraint and refrain from unilaterally changing the “status quo.” “Maintaining peace and stability across the Taiwan Strait is in line with our [the
EXTENDED RANGE: Hsiung Sheng missiles, 100 of which might be deployed by the end of the year, could reach Chinese command posts and airport runways, a source said A NT$16.9 billion (US$534.93 million) project to upgrade the military’s missile defense systems would be completed this year, allowing the deployment of at least 100 long-range Hsiung Sheng missiles and providing more deterrence against China, military sources said on Saturday. Hsiung Sheng missiles are an extended-range version of the Hsiung Feng IIE (HF-2E) surface-to-surface cruise missile, and are believed to have a range of up to 1,200km, which would allow them to hit targets well inside China. They went into mass production in 2022, the sources said. The project is part of a special budget for the Ministry of National Defense aimed at
READY TO WORK: Taiwan is eager to cooperate and is hopeful that like-minded states will continue to advocate for its inclusion in regional organizations, Lai said Maintaining the “status quo” in the Taiwan Strait, and peace and stability in the Indo-Pacific region must be a top priority, president-elect William Lai (賴清德) said yesterday after meeting with a delegation of US academics. Leaders of the G7, US President Joe Biden and other international heads of state have voiced concerns about the situation in the Strait, as stability in the region is necessary for a safe, peaceful and prosperous world, Lai said. The vice president, who is to be inaugurated in May, welcomed the delegation and thanked them for their support for Taiwan and issues concerning the Strait. The international community
COOPERATION: Two crewmembers from a Chinese fishing boat that sank off Kinmen were rescued, two were found dead and another two were still missing at press time The Coast Guard Administration (CGA) was yesterday working with Chinese rescuers to find two missing crewmembers from a Chinese fishing boat that sank southwest of Kinmen County yesterday, killing two crew. The joint operation managed to rescue two of the boat’s six crewmembers, but two were already dead when they were pulled from the water, the agency said in a statement. Rescuers are still searching for two others from the Min Long Yu 61222, a boat registered in China’s Fujian Province that capsized and sank 1.03 nautical miles (1.9km) southwest of Dongding Island (東碇), it added. CGA Director-General Chou Mei-wu (周美伍) told a