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World Financial System Partially Condemning Inequality-World Bank Malpas


Washington- world David Bank Governor Malpas On Monday, fiscal and monetary policy has been functioning in the “untapped territory” since the start of the COVID-19 pandemic. global inequality And poverty.

Malpas At a roundtable hosted by Chinese Prime Minister Li Keqiang, the number of people in extreme poverty has increased by more than 100 million since the pandemic began. global Spending has risen to record highs.

Developed countries are rebounding, but the poorest countries have seen only weak or no rebounds, he said. He said this was causing a “tragic reversal” of median income, women’s empowerment and nutrition, and inflation, supply chain bottlenecks, and high energy prices exacerbated these trends. ..

“Part of inequality The problem is global finance Unequal structure of itself and stimulus “ Malpas General sovereign debt, fiscal and monetary policy inequality..

Malpas He said monetary policy in advanced economies has long focused on the limited growth of reserve requirements and bank reserves in order to achieve currency and price stability. This is the approach that China still uses.

Other major central banks switched to “after monetarist” system“Uses a very large amount of surplus bank reserves to buy and hold duration bonds and other assets, which provided price support to a carefully selected asset group, he said. ..

He said the approach excluded SMEs and developing countries while curbing policies through regulation of liquidity and the market capitalization ratio of banks.

Fiscal policy was also directing resources to a small group of major borrowers, leaving others behind, and sovereign debt policy was contributing. inequality..

Malpas He repeated his call to increase the transparency of debt contracts and freeze debt payments in countries with unsustainable debt. He said creditors should move away from collateral and escrow arrangements.

“As one of the largest creditors in developing countries, China’s active participation and strong voice in debt reduction efforts is highly needed and all participants by encouraging sustainable investment and debt. Will benefit you, “he said. – – Reuters

World Financial System Partially Condemning Inequality-World Bank Malpas World Financial System Partially Condemning Inequality-World Bank Malpas

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