At an annual conference in Tokyo, Lagarde said: “We expect courageous and cooperative action on the part of our members,” Lagard said that policy maker’s ability to take growth-boosting measures was being hampered by economic uncertainty.

“Whether you turn to Europe, to the United States of America, to other places as well, there is a level of uncertainty that is hampering decision makers from investing, from creating jobs.”

But German Finance Minister Wolfgang Schaeuble said Europe is on the right track to solve its problems, “I am convinced that we will be able to tell our friends and partners around the world that Europe is in the process of solving its problems.”

Earlier this week the IMF cut its global growth forecast for the second time since April. Lagarde said that Asian economies are some of the hardest hit by the global crisis.

The World Bank also cut its forecast for Asian economies, with President Jim Yong Kim citing “uncertainty in the global economy.”