2nd Annual Cayman Islands Conference: Hedge Fund Best Practices

To combat the risks to global economic growth, Strauss-Khan called on emerging market countries to be ready to cut interest rates and spend more money, the same efforts the Washington-based Fund has urged for industrial nations.

"In economic policy, emerging economies could consider how they would respond to a downturn: how much scope there is for monetary easing in some countries; how much scope there is for fiscal stimulus in others," he said, while cautioning that any extra spending should be temporary and accompanied by other policy measures like exchange rate flexibility.

Strauss-Kahn noted that some countries might not have much scope to ease monetary policy or increase spending, but said there needs to be a concerted global effort to boost the world economy. read more