IMF requires $1.2 trillion to boost world economy

Up to two percent of the world's income, or 1.2 trillion dollars, should be spent on reviving the global economy. Dominique Strauss-Kahn, the fund's managing director, called for "massive" and coordinated use of budgetary policy to overcome the crisis. "It is time to use all instruments," he said at the opening of a conference on economic integration in the Maghreb region, urging a budgetary "push" of two percent of countries' gross domestic product. On a world scale, this would add up to 1.2 trillion dollars . "A coordinated budgetary policy sharply increases the effect of the policy," Strauss-Kahn said. He indicated that he would favour a further interest rate cut by the European Central Bank.