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IMF chief Lagarde says this week's global market nosedive may have been excessive

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PARIS — The head of the International Monetary Fund says market turmoil this week may have been an "over-reaction," as leading economic figures met to discuss Friday the global economy and worries about another recession in Europe.

Christine Lagarde described the week as a "correction on the markets, and perhaps at this stage, an over-reaction."

PHOTO: French President Francois Hollande, fourth from left, and OECD, Organization for Economic Co-operation and Development, Secretary General Angel Gurria, fifth from left, and managing director of the IMF Christine Lagarde, center, pose for a group picture prior to a meeting with International economic organizations at the OECD in Paris, Friday Oct. 17, 2014. The heads of major international economic organizations are to discuss the global economy following turmoil in financial markets this week and worries about another recession in Europe. First row from left: French finance minister Michel Sapin, International Working Federation director Guy Ryder, World Bank President Jim Yong Kim, Francois Hollande, Angel Gurria, IMF President Christine Lagarde, World Trade Organization director Roberto Azevedo, French labor minister Francois Rebsamen. (AP Photo/Remy de la Mauviniere/Pool)
French President Francois Hollande, fourth from left, and OECD, Organization for Economic Co-operation and Development, Secretary General Angel Gurria, fifth from left, and managing director of the IMF Christine Lagarde, center, pose for a group picture prior to a meeting with International economic organizations at the OECD in Paris, Friday Oct. 17, 2014. The heads of major international economic organizations are to discuss the global economy following turmoil in financial markets this week and worries about another recession in Europe. First row from left: French finance minister Michel Sapin, International Working Federation director Guy Ryder, World Bank President Jim Yong Kim, Francois Hollande, Angel Gurria, IMF President Christine Lagarde, World Trade Organization director Roberto Azevedo, French labor minister Francois Rebsamen. (AP Photo/Remy de la Mauviniere/Pool)

Reforms in France are also on the agenda at Friday's meeting in Paris, in a country crippled by flat growth and high unemployment.

The Organization for Economic Co-operation and Development praised the French government's latest economic plan, especially 30 billion euros ($38.5 billion) in tax cuts for companies, and said it could boost growth by 0.3 points per year over the next five years — if it's implemented quickly and deepened.

French President Francois Hollande pleaded for "flexibility," saying, "We need structural reforms, but at the same time we need to present a budget that allows us to reach the growth goals we want," he said.

Hollande's finance and economy ministers are heading Monday to Germany — which has berated France for not sticking to deficit targets — to discuss Europe's economy.

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