The head of the IMF Christine Lagarde has weighed in on the ongoing U.S. fiscal cliff debate. Three weeks before a series of automatic tax increases and spending cuts are due to kick in if lawmakers don’t reach a new deal, Lagarde said she favors a comprehensive fix, rather than a quick one.
“My view is that the best way forward is to have a balanced approached that takes into account both increasing revenues and cutting spending as well.”
Lagarde said the uncertainty of a quick fix would fuel doubt, which prevents investors, entrepreneurs, and households from making decisions.
Watch the CNN interview
In an interview with the BBC, Lagarde said people around the world are concerned about the fiscal cliff, and a subsequent sudden drop in U.S. growth would have global repercussions.
Filed under: Advanced Economies, Economic Crisis, Employment, Fiscal policy, growth, IMF, International Monetary Fund Tagged: | Christine Lagarde, CNN, entrepreneurs, Europe, fiscal cliff, government spending, growth, households, IMF, iMFdirect, International Monetary Fund, investors, taxes, United States