"Optimism is in the air, particularly in financial markets, and some cautious optimism may indeed be justified," International Monetary Fund Chief Economist Olivier Blanchard says. Although he calls the time ahead "high mountains", he says averting the euro-zone crisis and the US "fiscal cliff" might have left the worst threats behind. Additionally, he says fears of a currency war are overblown and "to the extent we think the policies are appropriate, then the implications in terms of exchange rates are also appropriate".

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