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IMF, ECB diverge on stimulus

Stark divisions are emerging among policymakers about the withdrawal by governments and central banks of emergency support measures, with Dominique Strauss-Kahn, the IMF’s managing director, warning on Monday about the risks of early exit. In a speech in London, Strauss-Kahn said the global economy was on the verge of recovery but remained vulnerable to shocks and policy mis-steps, and that fiscal and monetary stimulus programmes should not be stopped too soon. His stance contrasted with warnings by the ECB that delays in unwinding exceptional fiscal and economic measures could backfire.

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