Governments around the world must take more meaningful steps to rein in public spending and raise revenues or risk hindering central banks’ efforts to tame inflation, an IMF official has warned.
Vitor Gaspar, head of the fiscal affairs department at the multilateral lender, urged policymakers to tighten fiscal policy at a time when it was becoming “increasingly difficult for most countries around the world to balance public finances”.
Speaking to the Financial Times ahead of the fund’s annual meetings in Marrakech in Morocco, he said: “Timing matters, and the sooner [this] can be done in many countries the better, from the viewpoint of consistency between monetary and fiscal policy.”
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