By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Christine Lagarde, Managing Director (MD) of the International Monetary Fund (IMF) Friday advised global policymakers to together to restore lasting stability and growth.

Lagarde gave this advice at a forum “The Global Calculus of Unconventional Monetary Policies” in Jackson Hole, Wyoming, United States.

According to her, the unconventional monetary policies (UMP) of central banks have bought global policymakers the time and space to carry out the reforms needed to lay the foundation for lasting growth.

Lagarde said policies such as the purchase of assets by central banks to support financial stability and boost activity—have allowed the global economy to lift itself out of the depths of the financial crisis.

First she said there is the need for policymakers to work better together to take into account more fully the impact of these unconventional policies—local and global—and how that affects the path of exit.

Second, that “all policymakers, within countries and across countries—have a responsibility to take the full range of actions needed to restore growth and stability.”

Lagarde said the IMF’s assessment is that the impact of UMPs so far has been positive, “on balance, all countries benefited, first from lessened risks of financial turmoil, then from increased growth,” she said.

She further affirmed that estimates suggest that quantitative easing, the purchase of assets by the U.S. Federal Reserve, boosted world output by more than 1 percent (1%). “Although the major gains were in the early phases, UMP has been a success,” she said.

The IMF boss emphasized that there should be “no rush to exit,” affirming that the period of exceptionally loose monetary policy must eventually end; but when exactly this happens will depend on country circumstances.

“In Europe, for example, there is a good deal more mileage to be gained from UMP. In Japan, too, exit is very likely some way off, one thing we can say for certain: The path to exit will and should depend on the pace of recovery,” Lagarde added.

She called for a clear communication policy by central banks “the risks to recovery from exiting too soon and the risks to financial stability from exiting too late,” Lagarde said.

“Even if well managed, exit from UMP may well present other, non-UMP countries with an arduous obstacle course. But they have the tools to deal with it,” she said, referring to the use of macro and micro prudential measures, capital flow management measures, and exchange rate flexibility.

Lagarde said while monetary policy has been part of the solution to the ongoing crisis, it cannot provide all the answers, unconventional policies need to be complemented by a broader spectrum of policies needed for durable, balanced growth.

She also warned that the hard work of central banks could be wasted if not enough is done on other fronts.