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About the speech a little bit tense we bring Peter Barnes and from Jackson Hole.
To talk about Ben Bernanke he will be -- or get he sat set up there.
He's used this forum as we talk about Peter in the past that's why people look to Jackson hall say all right.
Maybe we will get something from the Federal Reserve Chairman -- a hint at what's to come set us up for today.
Well that's right and then you're gonna have for everybody's gonna Parse this statement from Ben Bernanke has as they usually do and one of the things that he could talk about is headwinds.
In the to the US economy to the US economic recovery and one of those.
He said repeatedly is the debt crisis in Europe and we're joined now right now where the special guest David Lipton.
Is the number two guy at the official at the International Monetary Fund which is of course.
In the middle of the European debt crisis situation and trying to.
To fix it and contain it but he also has some -- person but respect for perspectives on.
The global economy as well also want to start welcome David to fox business and and get his first of all the big picture here.
We see a lot of cross currents.
In the global economy.
Europe -- China.
The US what -- what's the state of the state of the global economy right.
Thanks Peter thanks for having me to such a lovely spot.
Let me start by saying that the economic recovery is still very rocky one and that's the backdrop for everything that we're going to be talking about here.
Bernanke that drug you focus on.
We believe that provided that the US can handle the fiscal -- not go over the fiscal -- -- that Europe can plug away with.
The addressing the problems that they have that growth in the world the recovery is going to continue.
Albeit with somewhat slower than historical growth in advanced economies are probably quite comfortable growth in emerging market.
Economists but those are two big.
Risks and we'll see in the political setting in the United States -- the fiscal with issues handled this -- going into the winter.
In Europe it's very important that Europe and address its problems.
And that that includes.
Actions by the peripheral countries to deal with the problems they have and keep growth going.
And actions by -- Europe to provide an environment.
In which that can take place.
And they IMF and -- your teams you're you're in the thick of that in Europe Britain and working with the various countries that are there try to work through their.
Debt that debt issues.
You know what's going on right now we're just that -- -- lots of teams lots of negotiations.
Is the IMF going to get a right support checks.
Well it's a -- the process has moved along and and the setting for this next phase is that in the summer.
Europe took some important decisions the leaders met and they took some decisions about creating.
A new direction to complete the monetary union that's an important step they're talking about.
Banking union and European wide supervision.
And then our dry heat in the the last time he spoke.
Publicly explain that the ECB would do its part to European central European Central Bank would do its part.
-- -- correct the impaired monetary transmission mechanism to help.
Keep interest rates in.
The the the continent but especially in the peripheral countries from becoming very high because of doubts about the viability.
And now we're in a phase this fall will be all about.
How to go forward how to implement those decisions and if they can plug ahead I think.
The European situation improved but the risk of course.
Is that if they don't there will be worse outcomes and spill -- to the rest.
Well the big question let's put -- -- that that you know the ECB is gonna meet next week.
The speculation is that it could pull out a big bazooka.
You start buying.
Bonds directly from us Spain and Italy we've seen we've seen the interest rates Spanish and Italian debt go down last few weeks -- expectation.
What do you think's gonna happen next.
I've no idea what they will -- will say but clearly that that as -- say the phase is to him is to operational wise what he said.
He said that they would act he said that they would do what's necessary.
He said that there -- conditions and -- logically there are conditions he has to be in a situation where the countries in the periphery are taking care of their own business.
So that the ECB is not funding a country that has.
Fundamentals that are or are not up to snuff.
But provided aren't so I I expect that as the fall goes on they will hone in on how to put these pieces together.
Get the proper behavior in conditionality.
And the mechanism in the operational mechanism for firing the -- -- Did David -- of the IMF thanks so much for joining us here at fox business and have a have a -- -- Jackson -- you very -- -- -- you guys and they -- Peter thank you very.