The International Monetary Fund on Tuesday once again urged lawmakers and central bank policymakers to work in lockstep with each other.
When asked by CNBC's Geoff Cutmore Tuesday if the U.K. was a "poster child for economic illiteracy," IMF chief economist Pierre-Olivier Gourinchas said "certainly not."
"We've welcomed the recent developments, the fact that the government has announced a fiscal event at the end of the month. [The Office for Budget Responsibility] is going to be involved in evaluating the proposals.
Speaking more generally, however, he said it's very important that fiscal policy doesn't go in the opposite direction of monetary policy. "It would be like having, you know, two people in a car, each of them with a steering wheel, and trying to steer the car in different direction cannot work," he said."It's a bedrock for macroeconomic and financial stability going forward. And so what was announced in the case of the U.K., but not just the U.K.
His central message was that fiscal policy is hugely important but that it should be done in a way consistent with what central banks are trying to accomplish.There would be a cost for the rest of the world if the U.S. fails to tackle inflation, IMF chief economist says
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