According to the chief of IMF (International Monetary Fund), the tightening of financial policies by the US at a time when different nations are easing theirs could make rising economies vulnerable as number of their organizations and banks have strongly increased their borrowings in dollars in the most recent five years.
This asynchronous fiscal policy may trigger excessive instability in global monetary markets.
The divergence of fiscal policy ways has already led to a huge reinforcing of the US dollar.
The world has yet to attain to full monetary recuperation as Worldwide growth keeps on being weighed down by high debt and high unemployment, the IMF chief said at China Development Forum.
The IMF is an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate International Trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
