80334
Lagarde Calls on Germany to Invest More, Raise Wages
World Economy

Lagarde Calls on Germany to Invest More, Raise Wages

While in Germany, IMF chief Christine Lagarde has argued that larger German investments could help reduce regional and global imbalances that she’s concerned about. Her advice did not go down well in Frankfurt.
The head of the International Monetary Fund, Lagarde, on Thursday joined calls from a growing number of economists for substantially bigger German investments in the years ahead, DW reported.
Speaking at a conference with top economists and policymakers in Frankfurt, Lagarde noted increasing investments would “help to reduce global imbalances which we’re concerned about at the IMF.”
She also called on German policymakers and companies to stoke wage growth so as to boost inflation in the 19-member eurozone. “We have also advised the government in Berlin to spend more on reforms that help women go back to work, such as opening more child care centers and kindergartens” as well as “creating training programs for refugees”.
Lagarde hinted she saw no reason why Germany couldn’t spend budget surpluses to invest more in public infrastructure such as roads, railways and digitalization.
Some of her remarks met with a rather frosty reception, though. German central bank chief Jens Weidmann argued his country should “maintain a safety margin to the existing fiscal rules in the face of looming demographic changes”.
Chancellor Angela Merkel’s conservatives have pursued a policy of balanced budgets calling for paying down old debts and avoiding creating new ones.
The question of public spending has been a key source of friction between Merkel’s conservatives and the Social Democrats, who reached a preliminary deal on forming a coalition government, with the details yet to be hammered out.
Bundesbank chief Weidmann insisted that increased spending was not the solution, arguing that what’s required was “a shift in public expenditure from consumption to investment”.

 

Short URL : https://goo.gl/4noKBu
  1. https://goo.gl/MERZKE
  • https://goo.gl/PHhe43
  • https://goo.gl/9FVqFZ
  • https://goo.gl/5kR4Xs
  • https://goo.gl/Bbzqj3

You can also read ...

Close to 40% of digital transformation initiatives will be supported by AI capabilities.
The digital economy in Asia-Pacific, or APAC, is expected to...
An electronic stock indicator of a securities firm in Tokyo.
As investors come to terms with the impending end of easy...
Maersk is expanding its competitive universe to include different types of companies.
The world’s largest container company will start looking for...
Lloyds Profits Miss Forecasts
Lloyds Banking Group PLC raised its 2017 dividend by 20% and...
Most economists would agree that Italy needs faster economic growth if it is to resolve its public debt  and banking-sector problems in an orderly manner.
Italy’s economy is growing again, but it’s still the worst...
CBs May Top Inflation Targets
Not only will central banks meet their inflation targets, they...
Pak Current Account Gap Widens
Pakistan’s current account deficit widened 28.74% on a month-...
NZ Says Pacific Trade Deal Will Boost GDP
New Zealand estimates a Pacific trade deal would boost its...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus