Davos 2012: IMF issues austerity warning
Davos 2012: IMF issues austerity warning IMF head Christine Lagarde said she had come with her "little bag" to collect funds for the IMF Inappropriate spending cuts could "strangle" growth prospects, the head of the IMF has warned. Austerity programmes must be tailored to each economy, Christine Lagarde said, and not be "across the board". The International Monetary Fund has been one of those stressing the need for countries to cut their debts, but some fear this could hit growth. The correct response to the eurozone debt crisis has been a major debate at World Economic Forum in Davos. "We are not suggesting there should be fiscal consolidation across the board," Ms Lagarde stressed. "Some countries have to go full-speed ahead to do this fiscal consolidation, but other countries have space and room. They should explore what to do... in order to help themselves. "It has to be tailor-made." One of tho