IMF CHIEF URGES NATIONS TO MOP UP SEA OF CASH

       The global economy "appears to be emerging" from a steep slump and countries should plan to wind down stimulus efforts, International Monetary Fund chief Dominique Strauss-Kahn said yesterday. "The global economy appears to be emerging at last from the worst economic downturn in our lifetimes," Strauss-Kahn said in a speech in Berlin.
       The risks of the fragile recovery stalling appeared to be dominishing, as several advanced economies-including France and Germany-had already returned to growth and emerging economies were "recovering even more strongly",he said.
       But the warned that problems in the financial sector could persist or even intensify,particularly if efforts to restore banks to health are not completed.
       In light of the fragility of recovery, Strauss-Kahn cautioned there was "a real danger" countries may end their extraordinary monetary and fiscal crisis measures prematurely.
       "Having said this, the time is right for policy-makers to formulate their exit strategies," he added.
       The former French finance minister said international coordimation of exit strategies would perhaps be even "more important" than the well-coordinated crisis response.
       "Greater clarity in communicating policy intentions to the public is also essential to shore up confidence," he said.
       Strauss-Kahn was due to trave to London for a two-day meeting of finance chiefs from the Group of 20 developed and developing countries in advance of a September 24-25 summit in Pittsburgh, Pennsylvania.
       The global recovery Strauss-Kahn said, would likely be "relatively sluggish", with unemployment continuing to rise through next year.
       "A jobless recovery remains a risk.Having so many people out of work has significant economic costs, ranging from lower private demand to a decline in potential growth if structural unemployment rises," he said. "The social consequences are potentially even more worrisome."
       Regulatory reform momentum was lacklustre, he noted, urging countries to avoid "complacency" as financial markets improve.
       "The reform effort is not proceeding as quickly as is necessary to address the problems raised by the crisis," he said.
       The IMF managing director addressed concerns about the international monetary system and the dollar's role as the world's reserve currency in the wake of the financial crisis.
       Critics have noted the role of the dollar may have been "undermined" by US economic and financial troubles, he acknowledged.