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By Lisa BryantU.S. Treasury1 Secretary Henry Paulson sounded an upbeat note on the world economy Monday, despite the recent turmoil2 roiling3 the markets. Paulson's remarks came during a trip to Paris. Lisa Bryant has more from the French capital.
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| Henry Paulson talks to reporters after meeting with French President Nicolas Sarkozy, 17 Sep 2007 |
"Although this will be with us for a while - it's going to take a while to work through this turbulence4 in the capital markets - we're doing so against a backdrop of a strong global economy," he said. "And unlike certain periods of turbulence we've gone through in the past that have been precipitated5 by the real economy - issues that have been precipitated by bad lending practices - we'll work through this in some markets quicker than in others (and) we're already seeing a modest reduction in the strain in certain markets."
Secretary Henry Paulson's remarks come as Europeans worry the current market turmoil may have a longer-term impact on their banks and on the region's economic prospects6. French and German leaders want to increase market transparency as a result.
The U.S. Treasury Secretary also spoke7 positively8 about the candidacy of former French finance minister Dominique Strauss-Kahn as the new head of the International Monetary9 Fund.
"I very much appreciated his views. He's a very strong candidate and I look forward in the weeks ahead that this election process be finalized," he said. "So again, I'm very positive on Dominique Strauss-Kahn."
Paulson was to discuss Strauss-Kahn's bid during a meeting later Monday with French President Nicolas Sarkozy. The I.M.F. head is traditionally a European, although European Union officials say they might consider a non-European candidate in the future.
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