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IMF Managing Director Dominque Strauss-Kahn urged industrial and emerging market countries to do their share through macroeconomic and financial market policies to mitigate the impact of the current financial crisis which is causing a global slowdown.
"The world economy has entered a difficult phase, with the financial crisis spreading to the real economy," Strauss-Kahn said. "This has become a global problem that requires a global solution."
The current financial crisis, he said, began as "a problem in a single sector in a single economy has become a global problem." And what first appeared as a problem for financial institutions, is now becoming a problem for economies. He added that the effects that are already seen in the
Auditors and supervisors need to encourage consistency across institutions on asset valuation and crisis-related writedowns, he added. Strauss-Kahn said emerging markets can learn from the risk management and regulatory failures of industrial economies by building regulatory capacities to safeguard against the risks of non-transparent instruments and excesses in lending.