DAVOS, Switzerland (AP) — The head of the International Monetary Fund says that some countries that use the euro have the flexibility to boost growth to help shore up the eurozone economy.
Christine Lagarde says the eurozone should develop a “clear simple firewall” to contain the contagion of the debt crisis and restore trust. In addition, she says that the 17 countries that use the currency should continue tying their economies closer together over the months and years ahead.
Lagarde says the IMF has a role to play in restoring stability but that it needs more money. The IMF has said it needs around $500 billion more in financial firepower.
Lagarde spoke Saturday at the World Economic Forum in the Swiss resort of Davos.