Yellen: "US Leads Global Economic Recovery"... Return to Keynesian Policies

Global Economic Recovery Post-COVID-19 Led by US Confirmed
"Developed Countries Must Support Developing Nations"
Warning of Risks from Policy Easing Halt
Emphasis on Need to Improve Supply Chains
Biden "Hope to Provide Vaccines to Poor Countries"

[Asia Economy New York=Correspondent Baek Jong-min] Janet Yellen, U.S. Treasury Secretary, emphasized that the strong U.S. economy will lead the global economic recovery. President Joe Biden also announced that COVID-19 vaccines could be supplied to poor countries within a few months, signaling an expanding effort by the U.S. to strengthen its engagement in the global economy. There are also assessments that U.S. economic policy is shifting from neoliberalism, which values market freedom, to a Keynesian approach that supports government intervention.

U.S. Treasury Secretary Janet Yellen is discussing the global economy with David Malpass, President of the World Bank (WB), and Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF).

On the 6th (local time), Secretary Yellen presented a "blueprint" for the global economic recovery led by the U.S. during talks with David Malpass, President of the World Bank (WB), and Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF).

Secretary Yellen stressed that the COVID-19 crisis has severely impacted the entire world and that supporting poor countries is the responsibility of developed nations.

She also cautioned against advanced economies with rapid economic recovery from prematurely ending easing policies. She emphasized, "The lesson from the financial crisis is not to withdraw support too quickly."

Her hope for progress on approving new allocations of IMF Special Drawing Rights (SDR) and her remarks on the importance of resolving the worsening global debt problem reflect a similar context. The IMF has been promoting an expansion of SDRs to support developing countries and others severely affected by COVID-19. Secretary Yellen also expressed the view that developing countries should be helped to achieve both development and climate goals.

On the same day, President Biden, in a speech about vaccination, mentioned, "We hope to support COVID-19 vaccines for poor countries within a few months." This can also be interpreted as the U.S. intending to lift vaccine restrictions and take a more proactive role in global economic recovery.

Secretary Yellen also drew attention by emphasizing the need to strengthen global supply chains. She said, "I thought we had very efficient and resilient supply chains, but the reality was different," pointing out it as an urgent issue to be resolved. Although supply chain improvement is not typically a Treasury Secretary’s responsibility, this is interpreted as signaling the U.S. position by stressing the need for international cooperation.

Secretary Yellen also shared her views on infrastructure investment. She said, "We are reviewing tax incentives for private investment and research and development. We may also implement tax benefits for electric vehicles." Meanwhile, Secretary Yellen expressed hope that the U.S. economy will return to full employment next year.

This content was produced with the assistance of AI translation services.