Davos 2012: IMF issues austerity warning

Page last updated at 05:17 GMT, Saturday, January 28, 2012 - 10:17 EST

BBC:

Christine Lagarde said austerity was only one of the measures needed to overcome the debt crisis

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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."

Read the whole story: BBC