Lagarde Calls for More Global Coordination as QE Exits

International Monetary Fund Managing Director Christine Lagarde urged policy makers to work more closely together as they plan eventual exits from unconventional monetary policies, endorsing swap arrangements between central banks as an instrument to weather instability.

While there’s no agreement about the impact of measures taken by central banks such as the Federal Reserve or the Bank of Japan, officials need to better understand the potential spillovers, Lagarde said in prepared remarks for an annual Fed conference in Jackson Hole, Wyoming. If the scaling back of stimulus creates renewed financial turmoil, some countries may not be able to withstand it on their own, she said.