International Monetary Fund Managing Director, Dominique Strauss-Kahn Friday said the recovery will be sluggish and that a jobless recovery remains a risk.
"I am concerned about the social and economic costs of high unemployment, which will persist even as financial markets and output stabilizes," the IMF Managing Director said. Given the fragility of the recovery, Strauss-Kahn warned that "Policymakers should err on the side of caution as they decide when to exit from their crisis response policies."
However, governments should develop their exit plans now so that they are able to build public support and act when the time is right, he said. Strauss-Kahn underlined that international policy coordination has been an essential part of the response to the crisis and that "coordination of exit strategies will be just as important."
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