Future IMF chief economist 'relatively' upbeat on global economy

0 Comments | AFP, May, 2008

WASHINGTON (AFP) — The International Monetary Fund's future chief economist, Frenchman Olivier Blanchard, says he is "relatively optimistic" about the global economy, despite a financial crisis and surging oil prices.

"I am relatively optimistic," Blanchard said Tuesday in a phone interview with AFP after being named the top IMF economist by his compatriot, IMF managing director Dominique Strauss-Kahn.

"I have the impression that the problems facing us are little understood," he said, citing the collapse of the US housing bubble, the credit squeeze and skyrocketing commodity prices.

"After the initial phase which lasted during the second half of last year, during which time one was a bit lost ... I believe that policies were put in place that were...