by iMFdirect

The head of the IMF Christine Lagarde has weighed in on the ongoing U.S. fiscal cliff debate. Three weeks before a series of automatic tax increases and spending cuts are due to kick in if lawmakers don’t reach a new deal, Lagarde said she favors a comprehensive fix, rather than a quick one.

“My view is that the best way forward is to have a balanced approached that takes into account both increasing revenues and cutting spending as well.”

Lagarde said the uncertainty of a quick fix would fuel doubt, which prevents investors, entrepreneurs, and households from making decisions.

Watch the CNN interview

 

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In an interview with the BBC, Lagarde said people around the world are concerned about the fiscal cliff, and a subsequent sudden drop in U.S. growth would have global repercussions.