European Central Bank President Jean Claude Trichet said on Monday that it was still premature to declare the global financial crisis over, while he provided reassurance that the ECB was well prepared to unwind its unconventional measures in a gradual and timely manner. Meanwhile, Trichet’s former boss at the French Treasury, Dominique Strauss-Kahn, IMF Managing Director, also speaking on Monday, said it is still too early for a general exit from accommodative fiscal, monetary, and financial sector policies. Such exit should instead await a sustained recovery in private demand, as well as entrenched financial stability. The former French finance minister also said that the old growth model under which households in the United States and elsewhere propelled the global economy with their voracious appetite for consumption, is dead – - or at least on its last legs.
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