WASHINGTON (AP) - Finance ministers and central bankers should remain vigilant to ensure the smooth functioning of financial markets that have been jarred by a global credit crisis, the International Monetary Fund's policy-making committee said Saturday.
The group also said in a statement that monetary policy of member governments should focus on achieving price stability while keeping a close eye on inflation in the light of rising food and oil prices, among other factors.
Problems in the global economy came to a boil when credit markets froze on Aug. 9 as fear overwhelmed many investors. Troubles that began in the market for subprime mortgages in the U.S. spread to many other kinds of debt on international markets.
In an attempt to soothe jittery markets, the IMF statement urged 'continued vigilance to maintain well-functioning financial markets.'
The ministers said they would continue 'to work together to analyze the nature of the disturbances and consider lessons to be learned and actions needed to prevent further turbulence.'
The statement said the disturbances in financial markets in advanced economies are expected to have a moderating effect on global economic growth, although troubling risks have increased.
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