The Bank of England, the OECD, the IMF and credit-rating agencies have all given warning that such deficits are unsustainable.
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The IMF is withholding credit, and some investors were scared off by the fighting.
Other alternatives include precautionary lines of credit, such as the American Federal Reserve's with the central banks of Brazil and Mexico, or the IMF's flexible credit line.
The IMF chief, to her credit, was early in the latest phase of the crisis to call for greater bank recapitalization, which would involve an admission of losses and therefore more political and financial pain.
IMF, the volume of domestic credit is huge, and much of it is turning bad.
The security of access to financing has made the euro area even more attractive to the EU's eastern states, some of which have had to fall back on rescue loans or precautionary credit lines from the IMF.
And the Kirchners' refusal to settle with private creditors and their hostility to the IMF leave Argentina with few sources of credit.
The IMF fears that off-balance-sheet lending by Chinese banks as well as credit from lightly regulated nonbank lenders could backfire on the world's second-largest economy.
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But research by Mr Elekdag and Fei Han, also of the IMF, suggests that such external factors explain only a small portion (16%) of the variation in credit growth in emerging Asia.
Western Europe seems to have bypassed a much-hyped second whammy in the credit crisis from a debt bubble in Eastern Europe, thanks to loan support from institutions like the IMF and European Central Bank.
The IMF recommended Beijing consider a new round of stimulus through the budget rather than the financial system, since the large credit stimulus in 2009 and 2010 has increased risks to the banking system.
The sting in the IMF tail appeared to be calls for the government and the bank to do more to protect the poor, get credit to business, invest more in infrastructure and, if growth continues to flatline, to consider a temporary cut in VAT in future.
Analysts at Brown Brothers Harriman said what will be watched is that the International Monetary Fund may allow a plan to make short-term credit lines available to fundamentally sound countries and for discussions about developing nations kicking in more money to the IMF, which would be used to increase lending to Europe.
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