U.S. Treasury Secretary Timothy Geithner on Tuesday called on the International Monetary Fund to provide rigorous surveillance to spot new investment bubbles and keep country foreign exchange policies in line with goals to rebalance the global economy.
In remarks prepared for delivery to the IMF and World Bank annual meetings here, Geithner said the IMF needed to help police economic and currency policies among the Group of 20 developed and emerging countries.
The IMF will need to be a truth-teller, Geithner said in the remarks, which were to be delivered by Treasury Acting Assistant Secretary Mark Sobel.
For the IMF, this means that rigorous surveillance must help us shed light on trends that could lead to the next unsustainable boom, Geithner said. Under the new G20 framework for strong, sustainable and balanced growth, the IMF must provide forward-looking analysis of whether the world's major countries are implementing economic policies, including exchange rate policies, which are collectively consistent with G20 objectives.
(Reporting by David Lawder; Editing by Tim Ahmann)