Lagarde Says Cooperation on Climate, Inequality ‘Non-Negotiable’

Feb. 4 (Bloomberg) -- IMF Managing Director Christine Lagarde called on govts to build a “new multilateralism” that includes cities and cos. in an effort to address challenges such as widening income disparity.

* While policy makers’ immediate priority is to tackle high

debt levels or weak banking systems in wake of 2008

financial crisis, they also need to address longer-term

challenges, Lagarde said in speech in London yday; that

means adjusting to growing and aging population, overcoming

global warming and reducing income inequality, she said * “The kind of 21st-century cooperation I am thinking of will

not come easy,” Lagarde said, according to her prepared

remarks for BBC’s Dimbleby lecture; “yet given the currents

that will dominate the coming decades, do we really have a

choice? A new multilateralism is non-negotiable” * As competition for global capital intensifies with the

Federal Reserve’s paring of monetary stimulus, Lagarde said

the world needs a close relationship between monetary

institutions, which must be “mindful of the potential

impact of their policies on others” * Lagarde, a former French finance minister, also called for

“a financial system that serves the productive economy

rather than its own purposes,” and said no country can

stand alone on climate change and inequality

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