Key facts
- The IMF recommends governments increase welfare spending.
- Fiscal policy can help people rebound from the cost of living crisis.
The International Monetary Fund (IMF) has advised governments globally to increase their spending on welfare programs as a means to mitigate the impact of the escalating cost of living crisis. The organization highlighted that fiscal policies are essential tools for helping individuals and households navigate and recover from the economic challenges posed by inflation and broader economic instability. The IMF's recommendations underscore the role of government intervention in supporting populations during times of economic hardship.
