::Anticipation IMF swift Hot Money>>

Go Finance Reporting in WASHINGTON - Member countries of the International Monetary Fund (IMF) seeks to bridge differences over the global economy. This step was taken in order to anticipate the risk of rising inflation in developing countries for developed countries.

One of the challenges members of the IMF's recognition is about the swift flow of funds and speculation that fueled the growth, and an inflation rate of developing countries.

"When inflation rises in emerging markets, not just a matter of developing markets, this is a global inflation and interest rates may be a problem," said Finance Minister Tharman Shanmugaratnam of Singapore, who headed the IMF's steering committee, told Reuters on Saturday (04/16/2011)

Financial observers in Washington believe, the danger posed by high government debt and low interest rates. As a result, developed countries would be at risk of overheating from developing countries.

"It's one of the most difficult moments of the policy, one of the most complex challenges I have ever seen, certainly in my life," said the head of Organization for Economic Cooperation and Development (OEDC), Angel Gurria.

The increased focus on policies of developed countries is part of a shift in the IMF to pay more attention to the strength that comes increasingly to have influence.

Countries like Brazil have struggled to cope with a wave of "hot money" that drives inflation.

World Bank President Robert Zoellick projecting, rising food prices will be the biggest threat to poor countries in the world.

The World Bank estimates 10 percent increase in food price index could push 10 million more, to 44 million, enter into poverty during this year. "We have a risk of loss of generation," said Zoellick.

Tharman said inflation in developing countries could spread to developed countries and to bear a large deficit. That would push borrowing costs and threaten the recovery from the worst global recession in decades.

"We have learned from painful experience of recent years, that nothing is isolated and that the risk in one area. Quickly get transmitted to the whole world," he said.

Committee of the IMF said the global economy is experiencing reinforcement, but also need to be accompanied by policies to anticipate a significant risk. (GoFinance)