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LONDON, Jan 19 (Reuters) - Global financial markets seem to be overreacting to falling oil prices and China, the chief economist of the International Monetary Fund said on Tuesday.
Maurice Obstfeld also said it was critical that China is clear about its overall policy strategy, including its currency.
"It's not a stretch to suggest that (markets) may be reacting very strongly to rather small bits of evidence in an environment of volatility and risk aversion," Obstfeld said in a news conference held after the IMF cut its global growth forecasts for the third time in less than a year. (Reporting by Andy Bruce and William Schomberg)