There is unlikely to be a double-dip recession, while the fact that stimulus spending was helpful in containing the crisis is undisputable, Dominique Strauss-Kahn, managing director of the International Monetary Fund (IMF), told CNBC Monday.
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IMF Managing Director Dominique Strauss-Kahn
The US has taken the correct approach in dealing with the economic slowdown and making sure the recovery is sustainable, Strauss-Kahn added.
"It's not our baseline. We don't believe that the double dip will take place," he said. (Click here for the full interview)
Fears of a double dip have increased recently, with some analysts saying austerity in Europe could sink the world into a second recession.
Stimulus spending was the key for containing the crisis, according to Strauss-Kahn.
"The fact that the stimulus was absolutely useful is not challenged by anyone now," he said.
"I think what the US is doing today is the right thing. I think as long as they will support (the recovery), finally it will pick up and create jobs," Strauss-Kahn added.
But the effect of the US policy will not be immediate, he said.
"We need to wait for one or two quarters to be sure," according to Strauss-Kahn.
Some officials and analyst said that financial markets' lack of supervision and risky bets have caused the crisis.
"Blaming the markets doesn't make a lot of sense," Strauss-Kahn said.
Regulators need to put in place better rules and supervision to make sure markets are effective, he added.
Strauss-Kahn did not want to respond to speculation that he was looking for a political position back in France.
"We're working in the direction of finding jobs for those who don't have a job. I have a job," he said.